Bitcoin’s Short-Term Momentum Turns Positive As Latest Rally Cancels Share Sale, Fairlead Strategies Says | Currency News | Financial and business news

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A nearly 20% increase in bitcoin over the past five days has helped catapult the cryptocurrency’s near-term momentum into positive territory. That’s according to Fairlead Strategies’ Katie Stockton, who sees further upside potential of 6% until bitcoin hits its next resistance level. “We expect the short-term overbought conditions to be strong enough for a minor stress test near $ 52,900,” Stockton said. Sign up here for our daily newsletter, 10 things before the opening bell.

Bitcoin’s 19% rise over the past five days has helped shift the cryptocurrency’s short-term momentum from negative to positive, Fairlead Strategies’ Katie Stockton said in a note Tuesday.

The rally helped end a volatile September which saw multiple price drops of up to 18% before a full recovery ensued. The upside volatility in bitcoin has helped generate a weekly “bullish pop” in the stochastic indicator that Stockton is watching for intermediate signals.

The increase in bitcoin’s risk has materialized despite a continued sell-off in stocks, with investors worried about rising interest rates, continued supply chain disruptions and uncertainty over capacity. of Congress to raise the US debt ceiling. The S&P 500 and Nasdaq 100 were down 5% and 7% since early September, while bitcoin was up 2% over the same period, based on Monday’s closing prices.

And Bitcoin’s recent rally is probably not over, as Stockton still sees potential upwards of 6% from its current price of around $ 50,000 before meeting minor resistance near $ 52,900.

“We expect the short-term overbought conditions to be strong enough for a minor stress test near $ 52,900,” Stockton said, adding that if bitcoin breaks that level, the cryptocurrency will target its most. historic high of about $ 65,000, representing upside potential. by 30%.

Stockton doesn’t think a bitcoin pullback is imminent, but if it is, potential support could be found at close to $ 46,700, which is a potential drop of 7%.

Bitcoin now has positive dynamics in the short, medium and long term, according to Stockton. “The long-term outlook for bitcoin is bullish, noting that bitcoin is above its growing weekly cloud and has positive long-term momentum,” Stockton said.

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