Technical strategist Katie Stockton, founder of Fairlead Strategies, has revealed she believes there is more upside ahead of bitcoin, after the flagship cryptocurrency moved up to test the $13,000 mark.
Bitcoin’s price went up after PayPal launched its new feature letting its over 300 million users buy, sell, and hold cryptocurrencies on its platform. The fintech firm now supports Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
The move saw various prominent figures in the cryptocurrency space celebrate BTC’s adoption. Mike Novogratz, CEO of Galaxy Digital, wrote:
In a note, reported on by Business Insider, Stockton revealed that bitcoin’s price has “gained short-term momentum” after successfully testing the key psychological support level at $10,000 back in September. Following its breakout above $12,000, the cryptocurrency is now eyeing the resistance at $14,000, seen in July 2019.
The figure aligns with a long-term Fibonacci retracement level. Fibonacci retracement levels are used in technical analysis to help identify support and resistance the market may encounter when moving up or down. The tool is based on the Fibonacci “golden ratio,” which focuses on the 61.8%, 50%, 38.2%, and 23.6% levels
As such, Stockton revealed that bitcoin hitting $14,000 is likely in the next few months, given its uptrend is supported by “positive long-term momentum and there is room to overbought territory based on the weekly stochastics.”
If BTC does break through the $14,000 resistance level, the only other trading range known that could see it face resistance is that of late 2017, when BTC traded between $16,000 and its all-time high near $20,000.
Featured image via Pixabay.