Bitcoin. Nurphoto / Getty Images
Fairlead Strategies' Katie Stockton stated that Bitcoin's record-breaking Wednesday high sets it up for further gains.
She believes bitcoin will reach $89,800 if it can achieve consecutive daily closes that surpass the $65,000 resistance.
Stockton stated that there is still room for long-term overbought levels. This will support additional upside in the next months.
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Fairlead Strategies' Katie Stockton says that Bitcoin's unprecedented surge on Wednesday will set the stage for further gains.
On Wednesday, the price surged to $65,000 above its previous record high. This was one day after the launch ETFs for bitcoin futures and ETFs for Bitcoin. It was the second largest ETF launch ever measured in terms of trading volume. Bitcoin reached a new record high of $67016.50. This increased its monthly gains to over 50%.
Stockton believes that bitcoin will reach $89,800 if it can achieve consecutive daily closes at or above $65,000 resistance. This would represent potential upside of 38%.
Stockton stated Monday that there is still room for long-term overbought levels. This will support additional upside in the next months. According to Stockton's note, bitcoin momentum remains positive over all timeframes and has outperformed other coins such as ether since September.
She said that investors can expect continued bitcoin growth, supported by a rising 200 day moving average and bullish momentum indicator. This can help build risk-on sentiment among investors, and drive the stock market higher.
Stockton isn’t the only analyst who makes sky-high bitcoin price projections.
Her technical price target of near $90,000. is below Fidelity’s $100,000 projection. Jurrien Timmer, Macro Director, expects that it will be achieved by 2023.
Fundstrat's Tom Lee stated that bitcoin could reach $168,000 because the supply of the currency is outstripping the demand. This may be partly due to the launch ETF bitcoin futures.
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