A few hours ago, Katie Stockton gave a profound insight on the probability of Bitcoin stirring up again. Katie Stockton, a technical analyst at Fairlead Strategies, shared her knowledge, as she ran through the reason Bitcoin was acting the way it was, on CNBC’s Squawk Box earlier today.
Is the equity market out of reach for Bitcoin?
The interview recalled the prominence of cryptocurrency, as a risk asset that led most of the equity market up until the recent crash. Katie pointed out that the major factor determining Bitcoin and other cryptocurrencies was sentiment. She emphasised how the crypto market is more of a highly driven sentimental market.
Katie indicated that technical analysts at Fairlead Strategies, including her, are still trying to figure out the sentiments of the market and the psychology behind it, as it manifests itself in supply and demand; and therein affects these price trends.
Looking at bitcoin right now, it did break down and saw that downside followed through to roughly 27,000. Katie went on to say that this was a very natural place for the Bitcoin to stabilize and, indeed, that’s what we’re seeing.
According to her,
“I would actually think that bitcoin would look worse than it did, as of yesterday, today or this morning, if we’re going to see further downside of this nature for the equity market. So, I guess that would suggest that Bitcoin is indeed giving us an indication or earlier indication of sentiment as we come in every morning.”
Katie stated that, right now, it (Bitcoin) “…is suggesting that we still could see that relief rally for the broader market on the equity front.”
The Rally might not stand a chance
After rebounding about 15% from its crash lows of the previous week, it appears that Bitcoin is exposed to another downward spiral. As a result of the bounce, a so-called ‘saucer-top’ formation has been recognised on the downside chart.
Again, the fallback of the price below the neckline activated a bearish top, and it might take surpassing $30,800 for Bitcoin to stay afloat from the technical downside risk.
Source: https://coingape.com/video/analyst-and-etf-portfolio-manager-reveals-where-bitcoin-is-headed-to/