Despite the predicted downside, Bitcoin’s long-term potential remains a topic of debate, with some experts optimistic about its eventual recovery and growth.
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Bitcoin’s recent post-election momentum appears to be fading away. According to a report by Market Insider, the world’s biggest cryptocurrency could face a significant pullback in the coming weeks.
Katie Stockton, founder of Fairlead Strategists, believes Bitcoin is at risk of a 10 per cent decline due to several technical indicators suggesting bearish momentum.
Technical Indicators
Stockton predicts that the cryptocurrency could drop to a support level of approximately $84,500, representing a 10 percent downside from its current position. If the decline continues, the next potential support level could be around $73,800, a 22 percent drop from current levels.
Stockton pointed to Bitcoin’s recent fall below its 50-day moving average, which she described as an “intermediate-term overbought sell signal.” According to her, this suggests a potential price correction in the first quarter of 2025.
Additional technical indicators, such as the daily Moving Average Convergence Divergence (MACD) and the 20-day moving average, also show negative short-term momentum, supporting the case for a bearish trend in the near term.
Long-term positive outlook
Despite these short-term concerns, Stockton remains optimistic about Bitcoin’s long-term outlook. She noted that monthly indicators, including the stochastics and MACD, suggest bullish potential for Bitcoin in the longer term. She also said that any correction is a potential opportunity to add to positions in Bitcoin.
