Bitcoin’s Long-Term Dynamics Indicators Still Positive Despite Recent Slowdown, Says Katie Stockton | Currency News | Financial and business news

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Bitcoin’s long-term outlook remains bullish despite recent volatility, according to technical analyst Katie Stockton. Bitcoin is down 30% from its November high, but remains in a long-term uptrend and has yet to break through key support levels. – Forward indicators are still pointing higher despite a drop this month, ”Stockton said. Sign up here for our daily newsletter, 10 things before the opening bell.

A recent bitcoin sell-off does not change a technical analyst’s long-term bullish view on the cryptocurrency.

Katie Stockton of Fairlead Strategies said in a note Monday that Bitcoin’s long-term outlook remains positive despite recent volatility.

Bitcoin is down 30% from its November record, but a rally of relief has helped the cryptocurrency recoup some of its losses. That was until late Monday night when the world’s most valuable cryptocurrency fell about 6% below the $ 50,000 level to $ 47,800 on Tuesday afternoon.

Despite the up-and-down action, bitcoin has managed to hold its ground above its key support level at $ 44,200, Stockton observed, representing a 61.8% Fibonacci retracement level. . Bitcoin’s successful test of that level throughout December helped improve near-term momentum from neutral to bearish, according to the note.

But in the medium term, bitcoin’s momentum remains weak and in bearish territory based on its weekly moving average convergence divergence indicator (MACD). “But we would assume a neutral bias in the medium term if the weekly stochastics cross,” Stockton said.

With a neutral short-term bias and a bearish medium-term bias, bitcoin remains in a choppy trading range with key short-term resistance between $ 54,600 and $ 55,600.

Yet bitcoin “remains firmly in a long-term uptrend … and our long-term gauges are still pointing higher despite a decline this month,” Stockton said.

If bitcoin is able to decisively break above its short-term resistance, its next target would be long-term resistance of around $ 65,000, which is a potential increase of 35% from current levels, according to the note. .

Despite the recent sell-off, bitcoin is still up 64% year-to-date, and is up 693% since the stock market hit its lowest level on March 23, 2020, amid the pandemic of COVID-19 was taking hold.

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