Bitcoin flashed a triple bullish signal after decisively moving above the $100,000 mark late last week.
According to data from market research firm Fairlead Strategies, over the past week, the company's technical short-term signals for Bitcoin have pointed to bullishness, and medium- and long-term momentum indicators have also turned from neutral to bullish territory.
“Bitcoin is showing renewed short-term momentum after emerging from a consolidation phase, so there is a case for continued bullishness heading into year end,” Katie Stockton, founder of Fairlead Strategies, said in a note on Monday.
Stockton believes that Bitcoin has the potential to approach the $124,000 price level in the coming months, an increase of about 17%.
On top of that, according to the aforementioned report, Bitcoin’s daily moving average indicator is slightly closer to a buy signal.
The Moving Average Convergence and Divergence (MACD) is a trend-following momentum indicator used by technical analysts to show the relationship between two moving averages of an underlying asset.
Stockton uses the MACD indicator to capture momentum and trend across multiple time frames. The indicator is attractive because it is black and white, sending either a buy signal or a sell signal.
Bitcoin’s MACD indicator flashed a buy signal on Tuesday, when the coin hit a new all-time high above $108,000.
Finally, while Stockton acknowledged that another weekly indicator was in overbought territory, she said it “could stay that way for several weeks on strong momentum.”
She highlighted Bitcoin’s initial support level, its rising 50-day moving average at $90,261, as representing a potential drop of about 15% from current levels.
Article forwarded from: Jinshi Data
