Bitcoin Breaks Above Key Moving Average, Setting Stage for Potential Breakout

Bitcoin has transitioned out of oversold territory but hasn't yet entered overbought status, according to Katie Stockton, managing partner at Fairlead Strategies.

In May, Bitcoin broke above its 200-day moving average, setting the stage for a potential breakout. The latest trading price is around $78,915, having reached a high of $81,000 on Monday.

The asset's price has been largely subdued in June and July, fluctuating below $65,000 for most of those months, with its lowest volatility recorded in the past 17 years.

Analysts believe that 'devaluation trades' may resurface as investors buy into assets they think will rise in value if fiat currencies decline. The US dollar fell after the Treasury Department announced increased repurchase operations, causing gold and Bitcoin to surge.