Analysis: Technical indicators suggest a strong bearish trend for Bitcoin in the short term, with a potential drop of 10% in the coming weeks
Katie Stockton, founder of Fairlead Strategists, believes that Bitcoin could fall another 10% due to some technical indicators showing a strong bearish momentum in the short term. Stockton stated that in the coming weeks, Bitcoin could drop to around $84,500 support level, which means a 10% decline from its current level.
She added that if prices continue to fall, the next support level might be around $73,800 - implying a 22% drop from its current level. Stockton pointed out that last week Bitcoin broke through the 50-day moving average confirming "an overbought 'sell' signal" for mid-term and supporting price correction predictions for Q1 this year. "Based on daily MACD and 20-day moving averages, short-term momentum is now negative supporting a shift towards short-term bearish bias."
Despite potential weakness in the short term, Stockton remains optimistic about Bitcoin's long-term trend and highlighted several positive monthly indicators: "Monthly stochastic indicators and MACD continue to support bullish prospects for the new year so investors can view corrections as opportunities to increase their exposure to Bitcoin." (Business Insider)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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