Katie Stockton, founder of Fairlead Strategies, said Bitcoin (BTC) has more room to run than gold right now. She pointed to how differently the two assets bottomed out.
Stockton joined CNBC’s “The Exchange” as BTC extended a sharp recovery. She said the digital asset is no longer oversold but has not become overbought either.
Bitcoin’s Breakout Confirmed
Stockton described a basing phase that started in June. She said the retest came in July, and a breakout is now underway.
BTC cleared its 200-day moving average, a level she called an almost precise hurdle back in May.
“We have obviously very strong short-term momentum and improved intermediate-term momentum now off of these lows.”
Katie Stockton, Fairlead Strategies, on CNBC
Bases often take time to complete, with multiple retests along the way, she noted. She said the immediate follow-through after the breakout helps confirm it.
Gold’s Rally Looks Different
Gold tells a different story, according to Stockton. The metal’s intermediate-term downtrend started later than BTC’s. Its current bounce is a countertrend rally rather than a full trend reversal.
Stockton said gold still carries intermediate-term momentum and should see further gains. She expects that move to hit resistance sooner than BTC’s, though.
The difference comes down to how long each asset spent falling before it turned higher. Stockton said BTC’s longer-term oversold reading followed a more prolonged decline. That gave it more time to complete a proper base.
Gold’s drop was shorter, leaving less room for its rebound to extend. That timing gap is the core of Stockton’s call.
BTC has more room to run before it looks stretched. Gold’s rally is closer to running its course.
BTC traded near $78,400 at the time of publication. Gold sat around $4,636 an ounce.
Both assets have rallied hard over the past several weeks. That has drawn fresh attention from traders comparing the two as stores of value.
Stockton’s read puts her among the more constructive voices on BTC’s outlook right now. She expects BTC’s rally to keep running longer than gold’s advance, giving it more room before hitting resistance.
Traders are still weighing whether the bounce marks a genuine trend change or another rally to sell into. Stockton’s read suggests the former for BTC.
Gold’s advance, by contrast, looks more like a pause within a longer corrective phase.