Katie Stockton, founder of Fairlead Strategists, believes Bitcoin could fall another 10% as some technical indicators suggest strong bearish momentum in the short term.
Stockton said that in the coming weeks, Bitcoin could fall to support around $84,500, which would represent a 10% drop from current levels. She added that if prices continue to fall, the next support level could be around $73,800, which would represent a 22% drop from current levels.
Stockton noted that Bitcoin fell below its 50-day moving average last week, which confirmed a "medium-term overbought 'sell' signal," supporting predictions of a price pullback in the first quarter of this year, "Short-term momentum is now negative based on the daily MACD and 20-day moving average, supporting a shift to a short-term bearish bias."
Despite the potential for weakness in the short term, Stockton remains bullish on Bitcoin in the long term, pointing to several positive monthly indicators: "Both the monthly stochastics and the MACD continue to support a long-term bullish outlook for the new year, so investors could view a pullback as an opportunity to add exposure to Bitcoin." (Business Insider)