Where bitcoin and related stocks could be headed next, according to Katie Stockton
Bitcoin confirmed a breakout to new highs last week, marking a resumption of its cyclical and secular uptrends. The breakout is a bullish development across timeframes, relieving the chart of resistance, and it allows for an intermediate-term measured move projection of approximately $134,500. The weekly MACD shows positive intermediate-term momentum, and the stochastics have a bullish ‘pop’ higher supporting near-term follow-through for bitcoin. Support is now defined by former resistance near $108,300. Stocks with exposure to the cryptocurrency marketplace are rallying, as well, as we find they generally hold strong positive correlations (60% or more) with bitcoin. Two of the most widely followed stocks in the space are MicroStrategy (Strategy) (MSTR) and Coinbase (COIN) , both of which have seen significant rallies alongside bitcoin. The chart of COIN is compelling because its up-move has resulted in a confirmed breakout above long-term resistance near $346, which goes back to the 2021 high. The chart has the look of a long-term cup-and-handle formation, which we find to be a high-probability bullish price pattern. The breakout yields a long-term measured move projection of roughly $460. Long-term momentum has reaccelerated behind COIN, indicated by a recent ‘Golden Cross’, where the 50-day moving average (MA) crosses above the rising 200-day MA. While this is not usually a good time to add exposure, referencing the same crossover in November 2024, we would note that bitcoin saw just a few weeks of healthy consolidation on the back of its golden cross before breaking out. In sum, the rally in the cryptocurrency market has been explosive, and while consolidation can be expected, the breakouts serve as technical catalysts that warrant long-term exposure. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. 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