Bitcoin Price Forecast: 10% Downside Possible as “Sell” Signal Flashes.

• Bitcoin It could be heading towards a correction for several weeks, according to Katie Stockton.
• The strategist said that Bitcoin was flashing a “sell” signal, given recent trading patterns.
• It expected the cryptocurrency to find support at around $84,500, which would mean a 10% decline from current levels.

Bitcoin’s momentum has weakened after the election, and the cryptocurrency may soon see a weeks-long sell-off, according to a senior technical strategist.

Katie Stockton, founder of Fairlead Strategists, believes that Bitcoin could be headed for another 10% decline, thanks to a few technical indicators that point to near-term bearish momentum.

Stockton said that over the coming weeks, the cryptocurrency could 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 decline, the next support level could be around $73,800, which would mean a 22% decline from current levels.

Stockton noted that Bitcoin fell below the 50-day moving average last week. This confirms a medium-term overbought “sell signal,” which supports a price correction in the first quarter of next year, she wrote in a note to clients on Tuesday.

“Short-term momentum is now negative according to the daily MACD and 20-day moving average, supporting a move toward a bearish bias in the short-term,” Stockton said, referring to the convergence/divergence of the daily moving average and the 20-day moving average. Moving over 20 days. Average, two other indicators that reflect short-term pricing trends.

Despite the potential for near-term weakness, Stockton remained bullish on Bitcoin in the long term, citing several positive monthly indicators.

“Both the monthly stochastic and MACD continue to support the long-term bullish outlook going into the new year, so we will view the correction as an opportunity to add exposure to Bitcoin,” she added.

Bitcoin’s price has fallen in recent weeks, erasing gains that took the cryptocurrency into six-figure territory in December. The coin is now down 1% over the month, but is on track to end 2024 with a gain of 116%.