More downturn for bitcoin predicted

by Jonathan Adams
bitcoin

That is according to Fairlead Strategies’ Katie Stockton, who stated recently that the $20,000 range for bitcoin could be back in play after it recovered strongly from those levels earlier this year

Bitcoin decisively dropped below its 200-day moving average in the past week, and the negative price action indicates there could be more downturn ahead in the short term.

That is according to Fairlead Strategies’ Katie Stockton, who said in a recent note that the $20,000 range for bitcoin could be back in play after it recovered strongly from those levels earlier this year.

Stockton is eyeing the $25,200 mark as a key support level for bitcoin. If the crypto currency decisively drops below that mark, the next support range is at $20,600, representing potential downturn of 21 per cent from present levels. Bitcoin traded at $26,191 on Wednesday.

As it stands, the weekly stochastics point lower amidst weak intermediate-term momentum, supporting a breach of $25,200 support, she added. We stay long-term neutral, but we are wary of negative catalysts that could develop from a bigger rebound.

Bitcoin has been a rollercoaster this year, as it doubled from nearly $16,000 to $32,000 between January and July, before dropping back down to its present level.

That coincided with bond yields dropping earlier in the year then spiking in recent months as the outlook on the Fed’s monetary policy has shifted.

Most recently, bitcoin saw a rapid decline from just below $30,000 to nearly $26,000 after a report said that SpaceX wrote off its bitcoin position and sold some or all of its position.

Investors have held out hope that the US Securities and Exchange Commission is close to approving a spot future bitcoin exchange-traded fund, as it evaluates applications from BlackRock and Fidelity, besides others.

If those bitcoin exchange-traded funds finally get approved, some experts like Fundstrat’s Tom Lee anticipate a boost in demand for the crypto currency that results in bitcoin surging above the $100,000 price level.

For now, there is no indication that the Securities and Exchange Commission will move ahead with approval, and bitcoin stays in a precarious position if its technical support levels are not decisively held.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Trading and Investment News. The information provided on Trading and Investment News is intended for informational purposes only. Trading and Investment News is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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