Bitcoin shows more upside potential than gold, says analyst

Bitcoin is showing strong technical potential for further gains, according to Katie Stockton, founder of Fairlead Strategies. During an interview with CNBC, Stockton noted that while Bitcoin has exited its oversold state, it has not yet reached overbought territory, suggesting there is still room for upward movement.

Stockton highlighted that Bitcoin has successfully cleared its 200-day moving average, a significant technical hurdle that serves as a signal for a potential trend reversal. This recovery follows a basing phase that began in June and was retested in July. The cryptocurrency recently reached approximately $81,000 before trading near $78,400.

In comparison, Stockton views the recent rally in gold as a countertrend move rather than a full trend reversal. She explained that because gold's intermediate-term downtrend was shorter than Bitcoin's, it had less time to establish a solid base, meaning it may encounter resistance sooner than Bitcoin.

Institutional demand continues to support the digital asset, with US spot Bitcoin ETFs recording approximately $338 million in net inflows on August 24, led significantly by BlackRock’s IBIT.