Bitcoin Magazine Bitcoin May Be Near Breakout as It Leaves Oversold Territory: Fairlead Strategies' Katie Stockton

Bitcoin is no longer oversold, but there is still time to buy, according to Fairlead Strategies' Katie Stockton. In technical analysis, "oversold" describes an asset that has fallen far enough that momentum indicators suggest selling pressure may be largely exhausted.

Speaking Tuesday on CNBC, the financial research firm's managing partner said Bitcoin cleared its 200-day moving average in May, which could point to a potential breakout ahead. The 200-day moving average is one of the most closely watched trend gauges in technical analysis, the chart-based discipline that guides Fairlead's research.

Bitcoin began rallying last week after news that the Treasury would at least double the size of its liquidity-support buyback operations. The Treasury has run regular buyback operations since 2024, repurchasing older, less-liquid securities to support trading conditions in the government bond market. The asset is up more than 22% over the past seven days and was recently trading at $78,915. On Monday, bitcoin traded above $81,000.

JUST IN: Fairlead Strategies founder tells CNBC Bitcoin is "not over bought yet, so that's the good thing." "We're looking for more upside from gold…maybe it won't be quite as long lived as what we expect from Bitcoin" pic.twitter.com/lXly8WRO3Y — Bitcoin Magazine (@BitcoinMagazine) August 25, 2026

JUST IN: Fairlead Strategies founder tells CNBC Bitcoin is "not over bought yet, so that's the good thing." "We're looking for more upside from gold…maybe it won't be quite as long lived as what we expect from Bitcoin" pic.twitter.com/lXly8WRO3Y

"It's not overbought yet, so that's the good thing," Stockton said. "Whenever you see a breakout above a resistance level, it's always better to have that immediate follow-through to essentially confirm the breakout."

Bitcoin traded below $65,000 for most of June and July and was experiencing the lowest volatility in its 17-year history.

The recent rally has led some analysts to say the so-called debasement trade may be active again. The debasement trade refers to investors buying assets when they believe fiat currency is losing value.

The dollar fell after the Treasury's announcement last week, and gold and bitcoin have both since advanced.

Bitcoin supporters have long argued that the largest cryptocurrency can serve as a hedge against government money printing, alongside precious metals. That argument dates to Bitcoin's creation in 2009, when the network's first mined block embedded a newspaper headline about bank bailouts during the global financial crisis.

U.S. investors also returned to bitcoin exchange-traded funds last week. The investment vehicles recorded their best week since October, with nearly $2 billion in inflows. U.S. spot bitcoin ETFs began trading in January 2024 after years of regulatory rejections, giving investors brokerage-account exposure without holding the asset directly, and their weekly flows have since become a widely tracked barometer of demand for bitcoin.

Bitcoin's price was further supported after President Trump met with crypto executives at the White House last week and said that advancing the Clarity Act would help keep the U.S. ahead of China.

Lawmakers had been hoping to hold a vote on the crypto market structure bill, or Clarity Act, in August. That vote is now expected in September. The House passed the bill with bipartisan support in July 2025, leaving the Senate to act. The bill would create a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins.

This post Bitcoin Breakout Could Be Around the Corner as Asset Is No Longer Oversold: Fairlead Strategies' Katie Stockton first appeared on Bitcoin Magazine and is written by Mathew Di Salvo .