Katie Stockton monitors improving crypto technicals as Bitcoin clears key moving average

Bitcoin just passed one of the most closely watched tests in technical analysis. Katie Stockton, founder of Fairlead Strategies and a Chartered Market Technician, says the largest cryptocurrency has decisively cleared its 200-day moving average, a development that tends to get momentum traders reaching for their buy buttons.

As of August 21, Bitcoin was trading around $78,400, having recently touched above $81,000 before pulling back slightly. Stockton describes the current setup as a “base breakout” following a basing phase that began in June and was retested in July.

What the technicals are saying

Stockton’s read on the current situation is nuanced. Bitcoin is “no longer oversold” but “not overbought yet,” she noted during a recent CNBC appearance. That middle ground matters. An oversold asset has already been beaten down enough to attract bargain hunters. An overbought asset is due for a cooldown. Sitting between those two extremes, with upward momentum building, is arguably the sweet spot for bulls.

The key levels to watch sit between $83,000 and $84,000. Stockton has identified this zone as critical resistance, meaning a clean break above it would further confirm the bullish case.

Stockton’s track record and tactical approach

Stockton isn’t just an analyst who comments from the sidelines. Fairlead Strategies runs a tactical Bitcoin ETF under the ticker BNAV, which dynamically adjusts its Bitcoin exposure based on technical signals. The fund operates with a base allocation of roughly 70% Bitcoin, scaling up to approximately 150% when conditions warrant it.

When she describes current conditions as showing “notable follow-through momentum,” the market listens.

How Bitcoin stacks up against traditional assets

One interesting comparison Stockton has drawn is between Bitcoin and gold. With gold trading around $4,636 per ounce during the same period, both assets are demonstrating strength, but Bitcoin’s technical setup may offer more room to run precisely because it hasn’t yet reached overbought territory.

For traders watching these levels, the setup is relatively clean. A hold above the 200-day moving average keeps the bullish thesis intact. A push through $83,000 to $84,000 confirms it. And a failure to clear that resistance, or worse, a drop back below the 200-day MA, would force a reassessment.

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