- Bitcoin's jump above the $45,000 level sets the cryptocurrency up for more upside ahead.
- Bitcoin's next target is resistance at $51,000, which represents 8% upside from current levels.
- "If the weekly MACD indicator flashes a 'buy' signal, it would indicate the relief rally has staying power," Fairlead's Katie Stockton said.
Bitcoin's months-long bear market could be nearing its end as the cryptocurrency jumps above $45,000 for the first time since the start of the year.
Bitcoin prices surged 7% over the weekend to $47,200, clearing the $45,000 level that has served as resistance throughout February and March. The upside move points to improving technicals in bitcoin and suggests more upside ahead, according to Fairlead Strategies' Katie Stockton.
"A breakout earlier this month suggested bitcoin has upside to ~$51.0K, which is resistance defined by a 50% Fibonacci retracement level," Stockton said in a note last week. A surge to that resistance level represents additional upside of 8% from current prices.
And the rally could have staying power if the weekly moving average convergence-divergence (MACD) indicator flashes a "buy" signal, , according to Stockton, something that is on the verge of transpiring as of Monday morning. Such a move would help reverse a good chunk of a painful months-long bear market that saw bitcoin prices crash nearly 50%, from a high of $69,000 to a low of about $35,000.
But since cementing a double bottom around the $35,000 level in January and February, bitcoin prices have surged 34%. And that strength has spilled over into other cryptocurrencies, including ether, which has started to outperform bitcoin in recent weeks.
"We believe the shift back in favor of Ether reflects 'risk-on' associated with the global relief rally in risk assets last week," Stockton said. That dynamic should play to more upside in risk-on assets like bitcoin and other cryptocurrencies.
