Katie Stockton, founder of Fairlead Strategies, said Tuesday that bitcoin’s rally in the new year doesn’t look sustainable. “The positive development is that it has rallied enough to give folks an exit,” Stockton said on CNBC’s “Squawk Box.” “The catch with that is when you see such strong, very steep rallies, they are more characteristic of countertrend moves.” After finishing 2022 down more than 60%, bitcoin has already risen about 40% year to date. The world’s largest cryptocurrency touched the highest level since August on Saturday, rising above $23,300. BTC.CB= 1Y mountain Bitcoin Stockton said a slow grind higher would be more bullish for bitcoin and other altcoins. Bitcoin had 14 consecutive up days this month at one point. “So we’re skeptical as to the sustainability of this rally, which we are still viewing as countertrend,” Stockton said. The token did break through the 200-day moving average this month, but Stockton said this has happened before and it proved to be a false signal. Meanwhile, the chart analyst said there are oversold conditions in place, but they’ve been in place for many months now. “We’re not convinced we have a breakout here,” Stockton said. “It’s not until we see the upturns in those gauges that we can really feel confident that we have something meaningful, and because it’s happened so quickly, it just hasn’t had that impact yet.”
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