Bitcoin's Basing Breakout Gives It Room to Run, Says Fairlead Strategies' Katie Stockton

Bitcoin's recent surge of over 25% since mid-August has left some wondering if it's due for a correction. However, Fairlead Strategies founder Katie Stockton believes there's still room to run. In an interview with CNBC on Tuesday, Stockton pointed out that Bitcoin has cleared its key resistance and is now in the process of a basing breakout.

Stockton noted that Bitcoin's basing process may have begun as early as June, with July providing the necessary retest. The fact that it has cleared its 200-day moving average, a significant technical level, also suggests a stronger trend. Stockton highlighted the immediate follow-through after the breakout as particularly constructive, indicating sustained gains are likely to continue.

While some may view Bitcoin's momentum as overbought, Stockton argues that it's not yet at this stage. She remains cautious on gold, viewing its current advance as a counter-trend relief rally rather than a new uptrend. With Bitcoin experiencing a longer and more pronounced down cycle, its emerging uptrend is likely to be more durable.

Realvision chief crypto analyst Jamie Coutts cautioned that rising altcoin leverage signals growing risk, but Stockton remains bullish on Bitcoin's prospects. As the cryptocurrency continues to trend upwards, investors will be watching closely for any signs of resistance or a potential reversal.