Opinion: The current pullback can be seen as an opportunity to increase Bitcoin exposure

Katie Stockton, founder of Fairlead Strategists, noted that several technical indicators point to bearish momentum for Bitcoin in the short term. In the coming weeks, Bitcoin could fall to support around $84,500, which would imply a 10% drop from current levels, Katie Stockton said. If the decline continues, the next level of support could be around $73,800, which would imply a 22% drop from current levels, she added. Bitcoin fell below its 50-day moving average last week. This confirms medium-term overbought and sell signals, supporting a price correction in the first quarter of 2025, she wrote in a note to clients on Tuesday. “Short-term momentum is now negative based on the daily MACD (exponentially smoothed moving average) and the 20-day moving average, which supports a shift to a short-term bearish bias,” Katie Stockton said, referring to two indicators that reflect short-term pricing trends. Despite the potential for weakness in Bitcoin in the short term, Katie Stockton remains bullish on Bitcoin’s long-term prospects, pointing to several positive monthly indicators. "Both monthly stochastics and the MACD continue to support a bullish long-term outlook for Bitcoin heading into the new year, so I would view pullbacks as an opportunity to add exposure to Bitcoin." (Business Insider)