Bitcoin Faces Increased Risk of Falling 18% After Breaking Key Support Level, According to Fairlead Strategies
The recent sell-off in bitcoin has raised concerns about the cryptocurrency’s future price movements, with Fairlead Strategies warning of a potential 18% decline after breaking below a key support level. Technical analyst Katie Stockton of Fairlead Strategies highlighted $57,800 and $51,500 as crucial support levels to watch in the coming days.
Bitcoin’s price has been under pressure recently, dropping below its 50-day moving average and key support level of $64,900. The cryptocurrency is down 13% over the past week and 16% from its all-time high in mid-March. Stockton believes that if bitcoin fails to hold above $57,800, it could see a further decline to $51,500, representing an 18% drop from current levels.
Despite the short-term risks, Stockton remains optimistic about bitcoin’s long-term prospects, citing a potential target of $80,600 in the future. Fairlead Strategies’ momentum signals have turned bearish in the short term but remain positive in the long term, indicating that the recent pullback may be a temporary interruption in the overall uptrend.
Investors will be closely watching bitcoin’s price movements in the coming days to see if it can reclaim key support levels and resume its upward trajectory. With volatility in the cryptocurrency markets on the rise, traders will need to exercise caution and closely monitor technical indicators to navigate the current market environment.
