Bitcoin is not overbought but isn't oversold anymore, says Fairlead Strategies' Katie Stockton

RIGHT HERE LAST WEEK, EXPLAINING WHY SHE WAS TURNING BULLISH ON BITCOIN. GREAT CALL. BITCOIN TRADING AROUND $64,000 WHEN SHE SAID THAT BACK ON AUGUST 17TH. BITCOIN IS NOW MORE THAN 25% SINCE THEN. KATIE RHEE JOINING US NOW. KATIE. GOOD. GREAT STUFF. GREAT CALL. JUST I MEAN IT CAN'T STILL BE AN OVERSOLD POSITION CAN IT. >> NO IT'S NOT OVERSOLD. IS OVERBOUGHT BUT BUT IT'S NOT OVERBOUGHT YET. SO THAT THAT'S THE GOOD THING. WE HAVE OBVIOUSLY VERY STRONG SHORT TERM MOMENTUM AND IMPROVED INTERMEDIATE TERM MOMENTUM NOW OFF OF THESE LOWS. NOW WE ALL KNOW THAT BASES ARE OFTEN PROLONGED AT BASELINE. PHASE USUALLY SEES A SERIES OF RETESTS. BUT YOU COULD ARGUE THAT THIS BASING PHASE THAT NOW APPEARS COMPLETED FOR BITCOIN STARTED IN JUNE, AND THAT THE RETEST WAS ACTUALLY IN JULY. AND NOW WE HAVE WHAT LOOKS TO BE A BASE BREAKOUT UNDERWAY. THE 200 DAY MOVING AVERAGE WAS CLEARED. AND THAT, OF COURSE, WAS A HURDLE BACK IN MAY. IT WAS ALMOST A SUPER PRECISE HURDLE, IN FACT. SO IT WAS A KEY LEVEL FOR BITCOIN TO SURMOUNT ON ITS CHART. AND WE SAW IMMEDIATE FOLLOW THROUGH. SO WHENEVER YOU SEE A BREAKOUT ABOVE A RESISTANCE LEVEL, IT'S ALWAYS BETTER TO HAVE THAT IMMEDIATE FOLLOW THROUGH TO ESSENTIALLY CONFIRM THE BREAKOUT. SO THAT'S WHERE WE STAND RIGHT NOW. >> DO YOU SEE THE SAME THING FOR GOLD? IT'S ALSO IN THE MIDDLE OF A RALLY. >> YOU KNOW, GOLD IS DIFFERENT BECAUSE WELL, IT HAD AN INTERMEDIATE TERM DOWNTREND ESTABLISHED AND IT WAS LATER THAN BITCOIN THAT THAT HAPPENED. NOW WE'RE SEEING THE RELIEF RALLY IN GOLD AS COUNTER TREND. IT IS STRONG. AND IT DOES STILL HAVE INTERMEDIATE TERM MOMENTUM BEHIND IT. SO WE'RE LOOKING FOR MORE UPSIDE FROM GOLD. BUT WE SUSPECT THAT IT WILL MEET RESISTANCE AND THAT MAYBE IT WON'T BE QUITE AS LONG LIVED AS WHAT WE EXPECT FROM BITCOIN, BECAUSE WE HAVE A LONGER TERM OVERSOLD READING FROM BITCOIN. AND IT WAS A MORE PROLONGED DOWN CYCLE. SO WE THINK THAT IT'S HAD MORE TIME TO ENTER THAT BASING PHASE. >> ALL RIGHT. OUTSIDE OF CRYPTO AND GOLD YOU GOT NVIDIA. YOU MIGHT HAVE HEARD ABOUT THIS NVIDIA COMPANY. THEY HAVE EARNINGS TOMORROW NIGHT. WHAT IS THE TECHNICAL SETUP ON NVIDIA AHEAD OF EARNINGS. >> I DO THINK ALL EYES SHOULD BE ON NVIDIA BECAUSE WE KNOW THAT THE SEMICONDUCTOR SECTOR OF COURSE HAS BEEN THE PRIMARY SOURCE OF UPSIDE LEADERSHIP AND AN INFLUENCE ON MARKET SENTIMENT. SO I DO THINK IT'S ESSENTIAL. AND WHILE THE TECHNICALS DON'T GIVE YOU AN EDGE NECESSARILY INTO THE EARNINGS REPORT, WE CAN AT LEAST FOCUS ON THE INDICATORS AND WHERE THEY STAND AND SEE WHERE THE PROBABILITIES LIE. SO AS WE COME INTO THIS EARNINGS REPORT, I JUST SAW FROM BESPOKE THAT NVIDIA WAS AT SEVENTH DOWN DAY. AND THAT'S UNHEARD OF. SO WE HAVE A SHORT TERM OVERSOLD CONDITION ON THE BACK OF THAT PULLBACK. AND THAT INCREASES THE LIKELIHOOD OF A BETTER REACTION TO THE EARNINGS REPORT. TO CONTRAST THAT IF WE SAW IT COMING INTO EARNINGS REALLY HOT THAT'S USUALLY MORE OF A CHALLENGE IN TERMS OF MARKET SENTIMENT. THE SUPPORT IS BASICALLY IN LINE WITH CURRENT LEVELS FOR NVI