Technical analyst Katie Stockton, founder of Fairlead Strategies, has predicted that Bitcoin ($ BTC) will soon see a easing rally that would dampen due to the ongoing downtrend in the market. The analyst referred to the main levels of support that are worth monitoring.
Speaking to Bloomberg, Stockton said Bitcoin and most altcoins “have been declining for some time,” but noted that sales have been “a bit shocking in terms of the rate of decline.”
The technical analyst added that “with such a decline, support levels will be removed,” and the last level of support is “decisive enough for us to be at the next level of support.” These levels of support, Stockton noted, are long-term levels.
It is worth noting that the subsidy level refers to the price level from which the asset does not fall down for some time. This level is created by buyers who enter the market at this level because it is seen as a buying opportunity.
Per Stockton, the price level considered by BTC’s Fairlead Strategies is “approximately $ 18,300 to $ 19,500” based on Fibonacci retracement levels associated with certain percentages based on the Fibonacci sequence first developed and used by ancient Indian mathematicians. Investopedia.
The technical analyst added that equities should see a short rally “this week or over the next couple of weeks”, although he expects the downtrend and correlation between cryptocurrencies and equities to continue over the medium term. According to Stockton, such a correlation is “normal” because there is a sense of risk-taking in the market.
Bitcoin, an analyst, is “shaking off much weaker holders in the cryptocurrency market” while keeping it a “little safe haven” in cryptocurrency space as it surpasses several altcoins during the downturn. He added:
I don’t think it shakes them endlessly. I think that the momentum must be seen to move in order to put such a start-up phase in place, and that is where confidence will be restored.
The analyst said weaker companies are unlikely to survive, although he believes there are great opportunities as the market begins to recover. These opportunities may be associated with less volatility, which is “natural as the asset class matures”.
According to Stockton, institutional interest is expected to grow over time. Equities are also under a “volatility regime,” which affects investor confidence. According to some metrics, the analyst said the “high-growth arena” is “deeply oversold by some metrics.”
Late last year, as CryptoGlobe reported, Stockton predicted the flagship cryptocurrency to rise to $ 89,000. As reported, the world’s largest fund listed on the BTC spot exchange saw outflows of more than $ 500 million late last week, which could have triggered the collapse of the cryptocurrency’s flagship below $ 18,000.
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h/t – CryptoGlobe