Bitcoin Is 'Not Overbought' Yet, Fairlead's Katie Stockton Says

Bitcoin may have more room to run after surging more than 25% since mid-August, as Fairlead Strategies founder Katie Stockton points to improving momentum and an ongoing basing breakout.Bitcoin Clears Key ResistanceIn an interview with CNBC on Tuesday, Stockton said Bitcoin is no longer oversold following its sharp rally, but importantly, “it’s not overbought yet.”While market bottoms often involve prolonged basing periods and multiple retests, Stockton says Bitcoin’s basing process may have begun in June, with July providing the necessary retest.“We have what looks to be a base breakout underway,” Stockton pointed out.Bitcoin has also cleared its 200-day moving average, a technical level that acted as significant resistance during May.Stockton highlighted the immediate follow-through after the breakout as particularly constructive, saying sustained gains after clearing resistance help confirm the move.Realvision chief crypto analyst Jamie Coutts noted on Tuesday that overbought readings are normal in a new bullish regime, but Bitcoin is approaching major resistance while rising altcoin leverage signals growing risk.Why Bitcoin Could Outperform GoldStockton remains constructive on gold but views its current advance differently from Bitcoin’s.Gold had already established an intermediate-term downtrend, making its latest move more of a counter-trend relief rally, she said. While momentum could support additional upside, Stockton expects gold to eventually encounter resistance.Bitcoin, meanwhile, experienced a longer and more pronounced down cycle and reached a longer-term oversold condition.That gave BTC more time to establish a base, potentially making its emerging uptrend more durable than gold’s current rally, according to Stockton.Image: Shutterstock