Katie Stockton monitors improving crypto technicals as Bitcoin clears key moving average

Bitcoin just passed one of the most closely watched tests in technical analysis. Katie Stockton, founder of Fairlead Strategies and a Chartered Market Technician, says the largest cryptocurrency has decisively cleared its 200-day moving average, a development that tends to get momentum traders reaching for their buy buttons. As of August 21, Bitcoin was trading around $78,400, having recently touched above $81,000 before pulling back slightly. Stockton describes the current setup as a “base breakout” following a basing phase that began in June and was retested in July. What the technicals are saying Stockton’s read on the current situation is nuanced. Bitcoin is “no longer oversold” but “not overbought yet,” she noted during a recent CNBC appearance. That middle ground matters. An oversold asset has already been beaten down enough to attract bargain hunters. An overbought asset is due for a cooldown. Sitting between those two extremes, with upward momentum building, is arguably the sweet spot for bulls. The key levels to watch sit between $83,000 and $84,000. Stockton has identified this zone as critical resistance, meaning a clean break above it would further confirm the bullish c...