Bitcoin is set up for at least 30% more upside after surging above a key technical level and with near-term momentum shifting positive

Bitcoin symbol at Bitcoin conference people
Bitcoin has fallen more than 40% from its April record high. Marco Bello/Getty Images
  • Bitcoin cleared its 50-day moving average on Sunday, setting the cryptocurrency up for more gains ahead.
  • Technical analyst Katie Stockton sees bitcoin surging to $US51,000 ($AU69,084) if it can clear certain resistance levels around $US43,000 ($AU58,247).
  • A surge to Stockton’s target of $US51,000 ($AU69,084) represents potential upside of more than 30% for bitcoin.
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Bitcoin’s more than 15% surge over this past weekend helped the popular cryptocurrency decisively clear its 50-day moving average, which represents a key technical resistance level that sets bitcoin up for more gains ahead.

Technical analyst and founder of Fairlead Strategies Katie Stockton said in a note on Monday that bitcoin’s recent rally could set it up for a surge to $US51,000 ($AU69,084) if it clears another resistance hurdle around $US43,000 ($AU58,247), representing potential upside of 32% from current levels. Stockton’s $US51,000 ($AU69,084) target for bitcoin was derived from fibonacci retracement levels.

The big resistance levels bitcoin faces before Stockton’s $US51,000 ($AU69,084) target include about $US43,000 ($AU58,247), representing current cloud resistance, and $US44,600 ($AU60,415), which currently represents bitcoin’s 200-day moving average.

According to Stockton, bitcoin’s move higher looks constructive after it staged a false breakdown below the highly-watched support level of $US30 ($AU41),000 ($AU40,638). That brief decline last led to a spring higher as some bulls likely capitulated on their position, while some bears likely initiated new short positions after the key support level briefly broke.

“Bitcoin tested and held widely watched support near $US30K in our anticipated ‘spring’ higher after it had gotten coiled up within the context of its long-term uptrend,” Stockton explained, adding, “Importantly, both bitcoin and Ether have cleared their 50-day MAs on newly positive short-term momentum.”

The move higher in bitcoin comes after rumors circulate that e-commerce giant Amazon could soon begin accepting bitcoin as a form of payment for its products.

Technical analysis chart of bitcoin.