Katie Stockton, founder of Fairlead Strategists, pointed out that some technical indicators suggest a bearish momentum for Bitcoin in the short term. She noted that Bitcoin could fall to around $84,500 in the coming weeks, indicating a 10% downside from current levels. She added that if the downward trend continues, the next support level might be around $73,800, implying a 22% drop from current levels. Bitcoin fell below its 50-day moving average last week. In a report to clients on Tuesday, she wrote that this confirms mid-term overbought and sell signals, supporting a price correction in the first quarter of 2025.
Katie Stockton stated: "Based on the daily MACD (Moving Average Convergence Divergence) and the 20-day moving average, short-term momentum is now negative, which supports a shift to a short-term bearish bias." She referred to two indicators that reflect short-term pricing trends. Although Bitcoin may experience weakness in the short term, Katie Stockton remains optimistic about Bitcoin's long-term prospects and noted several positive monthly indicators. "The monthly stochastic and MACD indicators continue to support a bullish long-term outlook for Bitcoin heading into the new year, so I will view the correction as an opportunity to increase Bitcoin exposure." (Business Insider)

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