Bitcoin Flashes Bullish Signals, BTC Price Predicted to Hit $124,000 This Year

Bitcoin just flashed a trifecta of bullish signals after it decisively jumped back above the $100,000 level late last week.

Bitcoin flashed a trifecta of bullish technical signals this week after the cryptocurrency decisively cleared the $100,000 level late last week.

Fairlead Strategies’ technical short-term signal for bitcoin flashed “Bullish” over the past week, flipping from “Neutral” and joining intermediate- and long-term momentum signals that were already in bullish territory.

Fairlead founder Katie Stockton said she sees the potential for bitcoin to gravitate toward the $124,000 price level in the coming months.

“Bitcoin exhibits renewed short-term momentum after pushing out of its consolidation phase, warranting a bullish bias through year-end,” Stockton said in a Monday note to clients.

On top of that, bitcoin’s daily moving average indicator inched closer to a “buy” signal, according to the note.

The moving-average-convergence-divergence indicator, or MACD, is a trend-following momentum indicator that technical analysts use to show the relationship between two moving averages of a security's price.

Stockton uses the MACD indicator to capture momentum and trends across multiple timeframes. The indicator appeals to her because it generates either a buy or a sell signal, which leaves little room for interpretation.

Bitcoin’s MACD indicator flashed a “buy” signal on Tuesday morning as the coin hit a record high of $108,369.

Finally, while Stockton admitted that a separate weekly indicator was in overbought territory, it "can stay that way for several weeks amidst strong momentum," she said.

She highlighted an initial support level for bitcoin at its rising 50-day moving average of $90,261, representing potential downside of about 15% from current levels.

On the flipside, Stockton gave an upside target of $124,000 to be reached within the next few months, a gain of about 17%.