According to technical analyst Katie Stockton, Bitcoin is testing a key level of resistance that could signal a 69% pause in its 1-month rally | Currency News | Financial and business news

  • Bitcoin is pushing against a major level of resistance that could signal a pause in its recent rally, said Katie Stockton of Fairlead Strategies.
  • After a month-long rally of 69%, Bitcoin rose against the resistance level of $ 51,000.
  • If Bitcoin breaks above that level, it could test its record high of around $ 65,000, Stockton said.
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Katie Stockton, founder of Fairlead Strategies, said the Bitcoin rally has encountered a major level of resistance since it bottomed out in mid-July that could signal a short-term pause.

Bitcoin is up 69% since falling below $ 30,000 on July 20. The popular cryptocurrency rose to $ 50,562 on Monday, just below the resistance level of $ 51,000 monitored by Stockton. Since then, Bitcoin has dropped to around $ 49,000.

The $ 51,000 level represents “a natural place for a short-term pause in the rally,” Stockton said, adding that the resistance level is derived from a Fibonacci retracement level.

But despite a possible pause in the Bitcoin rally, the outlook remains bullish based on the short-, medium- and long-term momentum indicators, according to Stockton.

“Our medium-term outlook is bullish as the positive momentum should help Bitcoin absorb overbought conditions well,” said Stockton. And with the short-term momentum on the upside, Stockton does not expect any short-term pullback to support near the 50-day moving average, which is currently around $ 39,500.

Instead, Stockton believes the next step up is preferred in Bitcoin. If Bitcoin crucially beats $ 51,000, which is characterized by daily consecutive closing prices above that level, then Bitcoin’s next stop should be its record high of around $ 65,000. An increase to $ 65,000 represents a potential 31% increase from current levels.

“The long-term momentum behind Bitcoin has strengthened and the 200-day moving average is rising again, supporting a bullish long-term outlook,” concluded Stockton.

Bitcoin chart

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