- Bitcoin’s recent sell-off successfully tested a key support level that signals more upside ahead.
- Katie Stockton of Fairlead Strategies now expects bitcoin to confirm a breakout above $64,900.
- A breakout would signal a long-term bitcoin target of $89,800, representing 53% upside.
Bitcoin’s weekend sell-off to $53,300 likely tested the resolve of those who pitched the popular crypto to family over Thanksgiving, but it also successfully tested a key technical support level that signals more upside ahead.
The $52,900 has been a key support level monitored by technical analyst Katie Stockton of Fairlead Strategies, and the successful weekend test of that level means higher bitcoin prices are likely, according to Stockton.
“A short-term oversold upturn combined with the loss of short-term downside momentum supports a resumption of the intermediate-term uptrend,” Stockton explained in a Monday note. Stockton’s technical momentum indicators for bitcoin are in bullish territory for the short, medium, and long-term time frames.
With support intact, bullish momentum indicators, and a prevailing uptrend in place, Stockton expects bitcoin to retest the $64,900 resistance level, representing potential upside of about 10% from current levels. But the gains could be even higher if bitcoin decisively breaks out above that level.
“We expect bitcoin to confirm a breakout above $64,900 in its next upmove, which would then target a long-term measured move of $89,900,” Stockton said. A move to almost $89,800 represents upside potential of 53% from current levels.
Bitcoin hit a record high of $69,000 in early November, before falling as much as 23% amid fears of the new Omicron coronavirus variant. It has since surged as much as 11% as risk-on assets including stocks recover some of the losses from Friday’s big sell-off.
“Long-term momentum is positive for bitcoin, and the weekly cloud is heading higher into 2022, supporting a long-term bullish bias,” Stockton concluded.