Analysis: Technical indicators show strong short-term bearish momentum for Bitcoin, with a 10% drop in the coming weeks

Odaily reports that Fairlead Strategists founder Katie Stockton believes that due to some technical indicators suggesting a strong bearish momentum in the short term, Bitcoin may drop another 10%. Stockton said that in the coming weeks, Bitcoin may fall to a support level of around $84,500, which would mean a 10% decline from current levels. She added that if the price continues to fall, the next support level could be around $73,800, which would mean a 22% decline from current levels. Stockton pointed out that Bitcoin broke below the 50-day moving average last week, confirming the "medium-term overbought 'sell' signal" and supporting the price correction forecast for the first quarter of this year. "Based on the daily MACD and 20-day moving average, short-term momentum is now negative, supporting a shift to a short-term bearish bias." Although there may be weakness in the short term, Stockton remains bullish on Bitcoin's long-term outlook and cited several positive monthly indicators: "The monthly stochastic and MACD continue to support the long-term bullish outlook for the new year, so investors can view the pullback as an opportunity to increase their Bitcoin exposure." (Business Insider)