According to Katie Stockton of Fairlead Strategies, Bitcoin could rise 34% from current levels as technical data points to a risky environment for the cryptocurrency market.
Stockton expects bitcoin to consolidate its recent gains over the next one to two weeks before moving higher. “Bitcoin is likely to clear $42,600 for a revised upward target of a secondary fibonacci retracement level near $51,000,” Stockton said.
Bitcoin can stand alone
Bitcoin could be on the brink of further upside potential as technical data points to a risky environment for the cryptocurrency market, Fairlead Strategies’ Katie Stockton said in a note on Monday.
Stockton eventually sees bitcoin jump to $51,000, representing a potential 34% advantage over current levels, following a consolidation of recent gains. Bitcoin has surged more than 40% since its July low of around $30,000 before hitting resistance near $42,600.
“We expect the pullback to mature in 1-2 weeks near the 50-day moving average (~$34,800), after which bitcoin is likely to clear $42,600 before a revised upward target of a near secondary fibonacci retracement level. of $51,000,” Stockton said. Safemoon crypto has risen.
In technical analysis, traders use the fibonacci retracement tool to help identify levels of support and resistance that a security may encounter during a sell-off or rally. The tool is applied to a high and low in a security’s price and then based on the Fibonacci “golden ratio”, which targets the 61.8%, 50%, 38.2% and 23.6% levels .
Bitcoin is positive
Stockton noted that long-term momentum remains positive for bitcoin, and a loss of medium-term downward momentum means bitcoin is good for further upside potential.
In addition, bitcoin’s loss of relative strength relative to ether signals “a potential switch to a high-risk environment within the cryptocurrency space,” Stockton said. Ether is up a whopping 57% since its low in mid-July. ETH Ethereum has started to rise.
If bitcoin finds support near its 50-day moving average, it would represent a 9% decline from its current level of around $38,200.