Bitcoin’s recent rally could extend further if it breaks through a key resistance zone, Katie Stockton of Fairlead Strategies noted in a recent analysis.
The largest cryptocurrency is currently trading around 20% above its monthly lows amid growing momentum and a successful break above its 50-day moving average (MA). Stockton explained that Bitcoin has broken through the critical resistance between $88,200 and $88,800, which includes the 200-day MA, adding:
“As per Fibonacci retracement analysis, it will pave the way for a move towards the next resistance level around $95,900.”
Stockton noted that weekly stochastics have turned bullish from oversold territory, reinforcing the possibility of a short-term breakout. However, he cautioned that on the monthly chart, stochastics have turned bearish from overbought levels, suggesting that any rally could still be countertrend in nature.
Support for Bitcoin is seen around $73,800, a level previously tested as resistance in March 2024. A more dynamic support level is found in the weekly cloud pattern, currently around $62,200. The slope of this pattern flattens out in the second half of 2025, which Stockton says could indicate that the momentum behind Bitcoin’s cyclical uptrend is waning.
Stockton also hinted at a similar momentum recovery in Ethereum (ETH), with the potential for a short-term rally. Resistance levels for Ethereum are set at $1,850 (50-day MA) and an old long-term trading range support at $2,040. ETH’s initial support is around the late-2023 lows at $1,550.
From a macro perspective, Stockton observed that Bitcoin has a stronger positive correlation with the Nasdaq-100 Index (NDX) than gold, reinforcing its classification as a risk asset. However, he noted that these correlations are not fixed.
*This is not investment advice.
