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The recent sell-off tested a key support level that signals more upside.
According to Fairlead Strategies, a break above $64,900 is now expected.
A long-term target of $89,800 would be represented by a break out.
The weekend sell-off to $53,300 may have tested the resolve of those who pitched the popular coin to family over Thanksgiving, but it also tested a key technical support level that signals more upside ahead.
The successful weekend test of the $52,900 support level is a sign that higher prices are likely, according to Fairlead Strategies technical analyst.
"A short-term oversold upturn combined with the loss of short-term downside momentum supports a restart of the intermediate-term uptrend," said Stockton in a Monday note. For the short, medium, and long-term time frames, the technical momentum indicators for bitcoin are in bullish territory.
With support intact, bullish momentum indicators, and a prevailing uptrend in place, Stockton expects the price to retest the $64,900 resistance level, representing potential upside of 10% from current levels. The gains could be even higher if the price of bitcoin breaks out above that level.
"We expect a long-term measured move of $89,900 to be the target of the next upmove, which we expect to confirm in the next upmove," he said. A move to almost $89,800 represents upside potential.
In early November, the price of the digital currency hit a record high of $69,000, before falling as much as 23% due to fears of the new Omicron coronaviruses variant. Risk-on assets, including stocks, recovered some of the losses from Friday's big sell-off.
The weekly cloud is heading higher into 2022, supporting a long-term bullish bias.
Business Insider has an original article.
