Bitcoin’s brief surge past the $40,000 mark helped the flagship cryptocurrency decisively go over its 50-day moving average, a key indicator that represented its resistance level. It’s now set up to move higher to $51,000, according to one analyst.
In a note first reported on by Business Insider, technical analyst and founder of Fairlead Strategies Katie Stockton said the flagship cryptocurrency could surge to $51,000 after it clears resistance found at the $43,000 level. Her price target was based on Fibonacci retracement levels.
Bitcoin’s price could also face resistance around the $44,600 mark, which is currently where BTC’s 200-day moving average is at. Stockton defended bitcoin’s move higher after it staged a fake breakdown below the $30,000 support level. She explained:
Bitcoin tested and held widely watched support near $30K in our anticipated ‘spring’ higher after it had gotten coiled up within the context of its long-term uptrend. Importantly, both bitcoin and Ether have cleared their 50-day MAs on newly positive short-term momentum.
Bitcoin is currently trading at around $37,000 after falling from a higher above $40,000 that it got to thanks to rumors claiming Amazon was set to accept BTC payments later this year. The online marketplace has denied such plans, and bitcoin’s price tumbled shortly after.
Stockton, it’s worth noting, has defended the flagship cryptocurrency in the past. Addressing a “death cross” in the cryptocurrency space earlier this month, she noted that they “are poor timing devices” that sometimes occur at “major lows.”
As CryptoGlobe reported, Bitcoin has also recently formed a double-bottom pattern that points to a rally to $44,000, which is where the pattern’s objective and BTC’s 200-day moving average were converging.
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