Fairlead's Katie Stockton: Bitcoin No Longer Oversold; Breakout Risk Rising

Katie Stockton, managing partner at Fairlead Strategies, said Bitcoin is no longer in oversold territory while still short of being overbought, adding that conditions point to a possible breakout. According to ME News, Stockton noted on Aug. 26 (UTC+8) that Bitcoin moved above its 200-day moving average in May. The market rally accelerated last week after news that the U.S. Treasury would at least double the size of its liquidity-support repurchase operations. Bitcoin logged a more than 22% gain over seven days and was recently trading around $78,915, after briefly topping $81,000 on Monday. Bitcoin spent most of June and July below $65,000 and saw its lowest volatility in 17 years. Analysts said the so-called "depreciation trade" may be re-emerging, where investors buy assets when they expect fiat currencies to weaken. Following the Treasury announcement, the U.S. dollar fell, while gold and Bitcoin moved higher. U.S. investors also returned to Bitcoin ETFs last week, with net inflows nearing $2 billion. Separately, President Trump met with crypto executives at the White House last week and said passing the Clarity Act would help keep the U.S. ahead. The bill, initially slated for an August vote, has been pushed to September and is designed to set rules for distinguishing among securities, commodities, and payment stablecoins within digital assets. (Source: ChainCatcher)