Bitcoin could cross the next level of support, analyst says
Bitcoin has a support level of $ 44,000, but that's unlikely to hold up, according to Fairfield Strategies' Katie Stockton.
Bitcoin's uptrend has taken significant damage over the past week and lower levels may be reached, a major crypto bull said on Friday.
While Bitcoin prices may have increased about 1% on Friday, the world's most popular cryptocurrency has fallen more than 25% in the past four weeks.
"We believe the risk will increase in the short term and even in the next two months," Katie Stockton, founder of Fairfield Strategies, told MarketWatch.
Bitcoin's $ 44,000 support level is likely to be broken, MW's popular analyst said, and the $ 37,000 secondary support level will be a key area for investors.
While investors should be vigilant, Stockton said the recent decline was an isolated incident and he remains bullish on cryptocurrencies over the long term.
Bitcoin's reversal on Friday could be the result of crypto's reputation as a haven from macroeconomic pressures as the U.S. consumer price index hit inflation near a 40-year high in November.
True believers view Bitcoin's tight supply as evidence of its hedge against inflation, and prices rose more than 4% at some point on Friday before detracting from profits.
On the last review, Bitcoin was trading 0.9% up at $ 48,258. On Friday, it had come back above the $ 50,000 mark at some point.