Fairlead Strategies’ Katie Stockton explains Bitcoin’s short term price outlook

3 Min Read
a snowy road in winter

Katie Stockton, the founder and managing partner at Fairlead Strategies, believes the crypto market could see yet more downside volatility, largely in correlation with the broader financial markets amid Fed-driven sentiment.

According to the market researcher, the outlook for cryptocurrencies in the short term leans more towards a bearish retest of key support zones rather than a fresh breakout above critical resistance.

And this perspective, she told Bloomberg in an interview on Tuesday, is reflective of the general outlook for risk assets. She said:

“We are definitely in a bear market cycle when it comes to cryptocurrencies, and really, risk assets more broadly. If you look at equity markets, downtrends have been in place year-to-date really across the board. And of course we have had some stabilization over the past few weeks and that gave some folks confidence that perhaps a bottom was being put in place. We’re not so convinced.”

She points to the “short-term overbought condition” currently engulfing the market as strengthening the likelihood of fresh downside momentum. This is also more likely if the broader risk asset market slips into a new downtrend. In her view, Stockton believes the negative long-term momentum is likely to persist.

Bitcoin faces dip below key support

On Tuesday, Bitcoin (BTC/USD) dropped by more than 4% in early morning trades, with bears poised above the $21,000 price level.

While bulls hold above the level, Bitcoin’s retreat below the 50-day moving average, currently near $21,988 puts the critical support at $20,000 in jeopardy. Indeed, the main support zone is in the $19,500 – $18,300 range.

According to the analyst, this buffer zone is “not too far below current levels” and that fresh pressure across risk asset markets could put it “in jeopardy of ultimately breaking.”

Last month, Bitcoin traded to lows of $17,600 after breaking below the psychologically important $20k level.

The post Fairlead Strategies’ Katie Stockton explains Bitcoin’s short term price outlook appeared first on Invezz.

from Bitcoin – Invezz

Share This Article
What Is Cryptocurrency? Crypto Token: Crypto Coin & Crypto Token: Know The Difference