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 $51,000 if it can clear certain resistance levels around $43,000.
  • A surge to Stockton's target of $51,000 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 $51,000 if it clears another resistance hurdle around $43,000, representing potential upside of 32% from current levels. Stockton's $51,000 target for bitcoin was derived from fibonacci retracement levels.

The big resistance levels bitcoin faces before Stockton's $51,000 target include about $43,000, representing current cloud resistance, and $44,600, 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 $30,000. 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.

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"Bitcoin tested and held widely watched support near $30K 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.
Fairlead Strategies
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