Katie Stockton, founder of Fairlead Strategies, said Tuesday that bitcoin’s rally in the new year does not appear to be sustainable. “The positive development is that it has rallied enough to give people out,” Stockton said on CNBC’s “Squawk Box.” “But when you see very strong and very sharp rallies, they are the hallmark of a counter-trend movement.” After ending 2022 down more than 60%, bitcoin has risen about 40% year to date. The world’s largest cryptocurrency touched its highest level since August on Saturday, climbing above $23,300. BTC.CB= 1Y Bitcoin mountain Stockton says a higher slow zone will be more bullish for bitcoin and other altcoins. Bitcoin had 14 days in a row this month at one point. “So we are skeptical about the sustainability of this rally, which we still see as a countertrend,” Stockton said. The token broke through its 200-day moving average this month, but Stockton says this has happened before and proved to be a false signal. Meanwhile, chart analysts say there is an oversold situation, but it has been for months now. “We’re not sure there’s a breakout here,” Stockton said. “It’s not until we see upturns in that measure that we can be sure that we have something meaningful and because it’s happening so quickly, we haven’t had that impact yet.”