- Bitcoin’s 8% surge on Wednesday could be just the beginning of an even bigger move higher if analysis from Fairlead Strategies’ Katie Stockton proves to be correct.
- In a note on Wednesday, Stockton said that improving technicals could shore up Bitcoin’s price to $14,000, representing a 10% jump from current levels.
- “Bitcoin has seen short term momentum improve within its long term uptrend and has a good amount of room to resistance, which is close to about $14,000,” Stockton said.
- Watch bitcoin trade live here.
Bitcoin climbed as much as 8% on Wednesday following news that PayPal would follow Square and allow its users to buy, sell, and transfer the cryptocurrency.
The development was considered a big one by many crypto investors, including Galaxy Investment Partners CEO Mike Novogratz, who tweeted that major banks will likely take the same path as PayPal and that “we have crossed the rubicon people.”
From a technical perspective, Fairlead Strategies founder Katie Stockton sees more upside ahead in bitcoin, according to a Wednesday note.
The technical strategist highlighted that bitcoin prices “have gained short-term momentum” after successfully testing the key psychological support level of $10,000 in early September.
Following a July breakout above the $12,000 level, Stockton highlighted that the $14,000 resistance level from 2019 would serve as the next price target for bitcoin, which also lines up with a long-term Fibonacci retracement level.
In technical analysis, traders use the Fibonacci retracement tool to help identify levels of support and resistance that the market might encounter during a sell-off or rally. The tool is based on the Fibonacci "golden ratio" and focuses on the 61.8%, 50%, 38.2%, and 23.6% levels of a market move.
Stockton said she believes bitcoin hitting $14,000 is likely in the months ahead, given that the uptrend is supported by "positive long-term momentum and there is room to overbought territory based on the weekly stochastics."
While $14,000 has been marked as resistance both in late 2017 trades as well as in June 2019, there is little in the way of resistance past that level besides the 2017 peak trading range of $16,000 to $19,666.
Bitcoin traded to a high of $12,819 in Wednesday afternoon trades. The popular crypto currency is up 78% year-to-date, according to historical data from Yahoo Finance.
