Bitcoin is no longer oversold, according to Fairlead Strategies managing partner Katie Stockton, who spoke with CNBC on Tuesday. Stockton noted that Bitcoin cleared its 200-day moving average in May, indicating that a potential breakout could be approaching.
Bitcoin began rallying last week following news that the Treasury would at least double the size of its liquidity-support buyback operations. The asset rose over 22% over a seven-day period, recently trading around $78,915 after trading above $81,000 on Monday. Stockton stated that the cryptocurrency is not overbought yet, adding that immediate follow-through is preferred when a breakout occurs above a resistance level to confirm the movement.
Prior to the recent rally, Bitcoin traded under $65,000 for most of June and July, experiencing its lowest volatility in its 17-year history. The recent upward movement has prompted some analysts to suggest that the debasement trade—where investors buy assets amid concerns that fiat money is losing value—may be returning. The U.S. dollar slid following the Treasury's announcement, prompting rallies in both gold and Bitcoin.
U.S. investors also re-entered Bitcoin exchange-traded funds last week, generating nearly $2 billion in inflows for the investment vehicles' best week since October. Additional price support came after President Trump met with crypto executives at the White House last week and emphasized the importance of passing the Clarity Act to keep the U.S. ahead of China.
Lawmakers previously aimed for an August vote on the crypto market structure bill, known as the Clarity Act, which will establish a framework to distinguish between digital assets classified as securities, commodities, or payment stablecoins. A vote on the legislation is now scheduled for September.
