Fairlead Strategies: Bitcoin is no longer oversold, a breakout is imminent

Fairlead Strategies Managing Partner Katie Stockton stated that Bitcoin is no longer in an oversold state, but it has not yet reached an overbought state. She pointed out that Bitcoin broke through the 200-day moving average in May, and a potential breakout may be imminent. Last week, Bitcoin began to rise due to news that the U.S. Treasury would at least double the scale of liquidity support repurchase operations, with a 7-day increase of over 22%, and the latest trading price is around $78,915, having previously surpassed $81,000 on Monday.

For most of June and July, Bitcoin traded below $65,000 and experienced the lowest volatility in 17 years. Analysts believe that the so-called "devaluation trade" may heat up again, where investors buy assets when they believe fiat currencies are devaluing. The dollar declined after the Treasury's announcement, while gold and Bitcoin rose accordingly. U.S. investors re-entered Bitcoin ETFs last week, with inflows nearing $2 billion.

Additionally, President Trump met with crypto executives at the White House last week, stating that pushing the Clarity Act through would keep the U.S. ahead. The bill was originally scheduled for a vote in August but has now been postponed to September, and it will establish a framework for distinguishing between securities, commodities, and payment stablecoins in digital assets.