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Bitcoin is no longer oversold but there’s still time to buy, according to Fairlead Strategies’ Katie Stockton.
Speaking on Tuesday to CNBC, the financial research firm’s managing partner said that Bitcoin cleared its 200-day moving average back in May, meaning that a potential breakout could be coming.
Bitcoin started rallying last week on news that the Treasury would at least double the size of its liquidity-support buyback operations. It’s up over 22% over a seven-day period, and was recently trading for $78,915. The coin traded above $81,000 on Monday.
“It’s not overbought yet, so that’s the good thing,” said Stockton.
“Whenever you see a breakout above a resistance level, it’s always better to have that immediate follow-through to essentially confirm the breakout.”
Bitcoin was trading under $65,000 for most of June and July and experiencing its lowest volatility in its 17-year history.
Its recent rally has some analysts saying that the so-called debasement trade could be hot again. The debasement trade is when investors buy assets when they think fiat money is losing value.
And losing value it is: The dollar slid following the Treasury’s announcement last week. Gold and bitcoin have since rallied.
Bitcoiners have long argued that the biggest cryptocurrency can work as a hedge against government printing, along with precious metals.
U.S. investors last week piled back into Bitcoin exchange-traded funds; the investment vehicles had their best week since October, with nearly $2 billion in inflows.
Bitcoin’s price was also helped after President Trump last week gathered with crypto executives at the White House and said that getting the Clarity Act over the line would keep the U.S. ahead of China.
Lawmakers were hoping to get a vote on the crypto market structure bill, or Clarity Act, in August. A vote will now go ahead in September. The bill will establish a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins.
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Source: cryptonews.net