Katie Stockton, founder of Fairlead Strategies and a certified market technician (CMT) known for her technical analysis in financial markets, discussed the current technical picture of Bitcoin on the Coinage program. Stockton stated that the long-term downtrend in BTC has reached its exhaustion point and that there are strong signals of a lasting bottom forming in the market.
Stockton stated that they examined technical indicators across multiple timeframes and argued that Bitcoin had reached a clear oversold condition on monthly charts. He also noted an upward movement in long-term momentum indicators, highlighting the importance of the price hovering near previously sought-after support levels for market psychology. He added that this situation increases Bitcoin’s chances of forming a long-term and lasting bottom compared to other assets like gold.
Touching upon macroeconomic developments and other asset classes, Stockton reminded that correlations between gold and Bitcoin are cyclical and should not be used as a direct buy-sell signal. The experienced analyst stated that the recovery in gold could be an interim rebound, while emphasizing that Bitcoin is technically showing signs of exiting a much deeper oversold region.
*This is not investment advice.
