- Bitcoin's new record high on Wednesday sets the cryptocurrency up for more gains ahead, Fairlead Strategies' Katie Stockton said.
- If bitcoin manages to see consecutive daily closes above former resistance at $65,000, she believes the cryptocurrency will target $89,800.
- "There is room to long-term overbought levels, supporting additional upside in the coming months," Stockton said.
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Bitcoin's historic surge on Wednesday sets the cryptocurrency up for more gains ahead, according to Fairlead Strategies' Katie Stockton.
The price surged above its prior record high of $65,000 on Wednesday, one day after the launch of a bitcoin futures ETF that saw the second biggest ETF launch in history as measured by trading volume. Bitcoin hit a new high of $67,016.50, extending its month-to-date gains to more than 50% in October.
If bitcoin manages to see consecutive weekly closes above former resistance at $65,000, Stockton believes the cryptocurrency will target $89,800, representing potential upside of 38% from the breakout.
"There is room to long-term overbought levels, supporting additional upside in the coming months," Stockton said in a Monday note. Momentum in bitcoin remains positive on all timeframes, and the cryptocurrency has been outperforming other coins like ether since the start of September, according to the note.
Supported by a rising 200-day moving average and bullish momentum indicators, she said investors can expect a continued rise in bitcoin, which can build upon a risk-on sentiment among investors and help drive the overall stock market higher.
Stockton isn't the only analyst making sky-high price projections for bitcoin.
Her near-$90,000 technical price target is just below Fidelity's $100,000 price projection, which Macro Director Jurrien Timmer expects to be met by 2023.
Meanwhile, Fundstrat's Tom Lee said bitcoin could hit $168,000 as supply of the coin is outstripped by demand, in part due to the launch of the bitcoin futures ETF.