Famous Analyst Levels In Bitcoin (BTC): “Watch Out For This Support!”

Katie Stockton, founder and managing partner of Fairlead Strategies of bitcoin evaluated the current situation.

Analyst Katie Stockton Gives Next Target Level On Bitcoin (BTC)

Bitcoin (BTC) went on the defensive ahead of the Federal Reserve’s key interest rate decision on Wednesday and appears to be on track to test the $18,300 support, which could worsen the bear market if breached.

world’s largest cryptocurrency At the time of this writing, it is trading at $18,870 with a 0.75% loss in the last 24 hours.

A week ago, Bitcoin failed to break the combination of the 10-month descending trendline and the resistance called the Ichimoku cloud just above $22,000. This brought bears back to a dominant position.

Stockton said the following about BTC in his notes to his clients:

“Bitcoin had a negative reaction to last week’s CPI data, resulting in a failed test of initial resistance in the daily cloud pattern ($22,000).

On the daily chart, the Moving Average Convergence Divergence (MACD), an indicator used to identify trend changes and trend strength, dropped below zero, confirming a new downtrend.

“Short-term momentum turned negative with a new daily MACD ‘sell’ signal, increasing risk as long-term support ($18,300) was tested,” Stockton said.

The sell signal came after a bullish failure at the descending trendline, the Ichimoku cloud resistance, and the 50 and 100-day moving averages.

Created by Japanese journalist Goichi Hosoda in the late 1960s, the Ichimoku cloud consists of two lines: the leading A and leading B lines. Both lines are drawn 26 days before the last candle to show future support or resistance.

“Two consecutive weekly closes below $18,300 will signal a deterioration in the downtrend and increase downside risk to secondary support near $13,900,” Stockton said, noting that the negative long-term momentum is increasing, according to the monthly chart MACD histogram.

*Not investment advice.