- Bitcoin is still in a correction phase, according to Katie Stockton, Managing Partner at Fairlead Strategies.
- Based on the downward break in the moving average, Stockton notes a loss of momentum in Bitcoin since the beginning of May.
- Stockton, who believes Bitcoin has a bullish long-term outlook, suggests that the risk-reward ratio will favor investors if the bottom is reached during this correction phase.
Bitcoin is currently in a correction phase, with a potential for a favorable risk-reward ratio for investors, according to financial expert Katie Stockton.
Bitcoin’s Ongoing Correction Phase
Bitcoin, the leading cryptocurrency, is still in a correction phase, as per Katie Stockton, Managing Partner at Fairlead Strategies. After analyzing the current Bitcoin graph, Stockton noted a downward break in the moving average, indicating a loss of momentum in Bitcoin since the start of May. This suggests that the cryptocurrency could remain in a correction phase for at least a few more weeks.
Long-Term Bullish Outlook Despite Correction
Despite the ongoing correction, Stockton maintains a bullish long-term outlook for Bitcoin. She points out that the 38.2% Fibonacci Retracement is around the $51,500 level. If Bitcoin reaches its bottom during this correction phase, the risk-reward ratio will turn in favor of the investors, providing a potentially profitable investment opportunity. Furthermore, the stochastic oscillator, which indicates overbought/oversold zones, could still move towards the oversold zone. This suggests that the price could drop once more before continuing its long-term uptrend.
Conclusion
While Bitcoin is currently in a correction phase, financial experts like Katie Stockton believe that this could present a favorable risk-reward scenario for investors. Despite short-term fluctuations, the long-term outlook for Bitcoin remains bullish. Investors and traders should keep a close eye on market trends and indicators such as the stochastic oscillator and Fibonacci retracement levels to make informed decisions.
