A critical Bitcoin support level to watch | CoinGabbar News

A critical Bitcoin support level to watch.

As the cryptocurrency market seems to get some comfort after a continuous bearish time, some technical analysts, such as Katie Stockton of Fairlead Strategies, forecast a relief bounce, albeit modest due to the overall downside momentum.

Stockton, whose firm specialises in technical analysis, stated: Australia's Vonni Quinn and Haidi Stroud-Watts on June 21 on the prognosis for Bitcoin (BTC) and other cryptocurrencies.

As per her, the scale of Bitcoin's collapse has been surprising in perspective of downside momentum, and it has "infected the entire space," but she believes that it will eventually stabilise. As she pointed out:

"Support levels are being destroyed as a result of such a drop, and our last support level was forcibly broken to the point that we're already at the following support level, which are long-term levels." Bitcoin is expected to trade between $18,300 and $19,500, so that's the major level to keep an eye on. It's a logical spot for a relief rally and some form of stabilisation."

"We do feel the relief bounce would be modest," Stockton said, highlighting the current downward momentum.

She predicted that the connection between crypto and equities would remain high, "perhaps not as high as they have been but very high, and that's very normal when you have a downtrending tape and a general risk of fear in the marketplace, so investors are treating Bitcoin, Ether, and equities like risk assets."

Furthermore, she stated that the current crisis will alter how crypto investor view the market in the future, "but I don't believe it will shake them out eternally." As she put it:

"I believe it's just a matter of waiting for momentum to shift in order to have that kind of grounding phase in place, and then confidence will be restored." So I believe it's time for a shakeup."

"The smaller companies will not recover," Stockton says, "but if we get out of this, there will be some fantastic opportunities, and perhaps the chances will have a little bit more endurance and maybe a little bit lower volatility, which is common as an asset class increases."

In the long run, the founder of Fairlead Strategies forecasts increasing institutional investment, but only once the market stabilises and "businesses that don't pass the test from a fundamental perspective are shaken out of the industry."