Bitcoin Braces for 10% Correction: Crypto Market Faces Turbulence Amid Bullish Long-Term Outlook
Staff Editor Crypto Market Faces Downturn as Bitcoin Shows Signs of Correction
The cryptocurrency market experienced a significant downturn in the past 24 hours, with the total market capitalization dropping nearly 7% to $3.41 trillion. Bitcoin, the leading digital asset, is showing signs of a potential multiweek correction, according to market analysts.
Katie Stockton, founder of Fairlead Strategists, predicts a 10% drop in Bitcoin’s value. She suggests that the cryptocurrency could find support around $84,500, with a possibility of further decline to $73,800. This forecast comes as Bitcoin’s momentum has weakened in the post-election period.
Technical indicators are pointing towards a bearish short-term outlook. Bitcoin has fallen below its 50-day moving average, triggering what Stockton describes as an “intermediate-term overbought ‘sell’ signal.” Additionally, short-term momentum indicators such as the daily MACD and 20-day moving average reinforce this bearish bias.
Despite these short-term concerns, Stockton maintains a bullish long-term outlook for Bitcoin. Monthly stochastics and MACD indicators continue to support a positive perspective over the longer term. Stockton views the potential correction as an opportunity for investors to increase their Bitcoin exposure.
Recent price movements show that Bitcoin has lost some of the gains it made when it briefly entered six-figure territory in December. The cryptocurrency is currently down 1% for the month. However, it is still expected to end 2024 with an impressive 116% gain, highlighting the volatile nature of the crypto market.
As the market navigates these fluctuations, investors and analysts alike will be closely monitoring Bitcoin’s performance in the coming weeks to gauge the depth and duration of this potential correction.
