Bitcoin could jump 10% as it makes bullish moves heading into year-end, technical analyst says

• Bullish trends behind bitcoin could send the cryptocurrency up 10% from current levels.
• Fairlead Strategies' Katie Stockton said bitcoin's next resistance level is at around $42,200.
• "Our intermediate-term trend-following indicators support a bullish bias for the next several weeks."

Bitcoin has been on a tear in 2023, and the gains could continue as bullish trends persist into year-end, according to Fairlead Strategies founder Katie Stockton.

Following a dismal 2022, bitcoin has surged 132% year to date and could jump another 10% to its resistance level at $42,200, she said in a Monday note. After consolidating sideways for the past few weeks, that $42,200 level could soon be within reach.

"Bitcoin would resolve its consolidation phase higher with a move above $38,000, which would act as a catalyst for a test of $42,200 resistance," Stockton told clients.

Bitcoin jumped more than 3% on Tuesday to cross above the $38,000 threshold, hitting an intraday high of nearly $38,300. The cryptocurrency is pushing up against levels not seen since May 2022, when it was in freefall.

Bullish technical signals for bitcoin are evident in the medium term, which gives Stockton confidence as to why the cryptocurrency could see further gains in the next few weeks.

"Despite the near-term consolidation, our intermediate-term trend-following indicators support a bullish bias for the next several weeks," Stockton explained.

If bitcoin can decisively close above its $42,200 resistance level two weeks in a row, it would generate an even longer-term bullish signal for further price appreciation ahead.

"Our long-term indicators have shown improvement, but they are not yet decisively bullish. A breakout above $42,200 would affirm a long-term bullish reversal," Stockton said.

In the meantime, initial support for bitcoin is at its rising 50-day moving average of about $33,900, according to Stockton.

She isn't the only one warming up to bitcoin going higher. Standard Chartered said the cryptocurrency could more than double from current levels to $100,000 in 2024, as a "crypto spring" has begun.