Katie Stockton of Fairlead Strategies stated that due to technical signals indicating that Bitcoin has become 'overbought' in its recent rally, Bitcoin appears set for a double-digit decline. In a report to clients on Tuesday, this top technical analyst indicated that she expects the leading cryptocurrency to weaken further in the short term, although the token will rebound to the $100,000 level.

Stockton predicts that Bitcoin is likely to find support around the $84,500 mark, which means that in the next sell-off, Bitcoin could fall another 13% from its current level.

She added that Bitcoin might find secondary support at the $73,800 level, which means that if the sell-off exceeds expectations, Bitcoin could drop by 25%.

Stockton stated, 'Bitcoin is rebounding, but we expect it to fade quickly, and relative to the peak in December last year, Bitcoin's rebound will be lower.'

'Weekly stochastic indicators show active overbought downs, and daily stochastic indicators show new overbought conditions, so we believe there is limited further upside in the short term.'

Nonetheless, Stockton indicated that she remains optimistic about Bitcoin in the long run, noting that a strong long-term backdrop could support the cryptocurrency throughout 2025.

Since the U.S. presidential election, Bitcoin has been on a rollercoaster ride, with bullish sentiment heating up as cryptocurrency traders focus on low interest rates and a more crypto-friendly environment under the new U.S. government. Perhaps the most optimistic development is the potential for a Bitcoin national reserve under Trump, which would allow the U.S. government to buy and hold Bitcoin as a strategic asset.

This week, Bitcoin's price has been volatile. On Monday, Bitcoin surged significantly, breaking through the $100,000 mark, but on Tuesday, with the resumption of selling pressure, Bitcoin fell by 5%. On Wednesday's Asian session, Bitcoin's trading price was around $96,700.