Bitcoin is approaching threat mode after testing the $30,000 point as support, Fairlead Strategies co-founder Katie Stockton said monday in a note.
“The threat is most likely to be to return to the cryptocurrency area if the relief rally persists, as expected,” Stockton said.
Bitcoin has recovered much floor after its sharp correction to $28,800 before this month, with the cryptocurrency trading above its 20-day moving average for the first time since mid-June on Tuesday.
“We want a break above the 50-day AD as a positive catalyst supporting a secondary stress close to $44,000,” Fairlead’s Katie Stockton said in the note.
What’s impressive is the strong bitcoin inventory despite the negative headlines, adding cryptocurrency mining bans in China, the SEC’s resolution to delay approval of a bitcoin ETF, and the UK banning cryptocurrency exchange Binance.
An uptick in inventory costs amid a steady barrage of negative inventories is perceived through technical analysts as a sign that a low has been reached and that a relief rebound is likely as dealers are depleted and offset by the upward stress of new purchases.
And despite the sharp correction in bitcoin costs since its peak in mid-April, the cryptocurrency’s long-term trends remain positive.
Bitcoin is up 25% since the start of the year on Tuesday afternoon.