According to renowned technical analyst Katie Stockton, Bitcoin has reaffirmed both cyclical and long-term uptrends by breaking out to new highs.
According to the analyst, this rise is seen as a positive development from a technical perspective as the resistance levels have been broken and it points to the potential for a moderate rise for Bitcoin to around $134,500 in the medium term.
Weekly MACD data suggests continued positive momentum in the intermediate term, while stochastic indicators also support a near-term uptrend. Bitcoin’s new support level is currently around $108,300, which previously served as resistance.
This surge in the cryptocurrency market wasn’t limited to Bitcoin; stocks with exposure to cryptocurrencies also experienced similar momentum. Many of these stocks exhibit a strong positive correlation of over 60% with Bitcoin. Among the most notable are MicroStrategy (MSTR) and Coinbase (COIN), which have seen significant gains alongside Bitcoin.
Stockton notes that such technical breakouts typically trigger long-term uptrends after a brief period of consolidation. A similar example of a “golden cross” in Bitcoin in November 2024 supported a strong rally that followed a several-week correction.
*This is not investment advice.