Pro: the recent rally in Bitcoin may not be ‘sustainable’
- Katie Stockton expects a pullback in Bitcoin price ahead.
- She explained her “neutral” view on CNBC’s “Squawk Box”.
- Bitcoin has climbed roughly 40% since the start of 2023.
Bitcoin has now surpassed the key $23,000 level but Katie Stockton of Fairlead Strategies continues to recommend caution as the recent rally could reverse just as easily.
Stockton defends her stance on CNBC
Year-to-date, the first ever decentralised cryptocurrency has gained about 40% – a strength she says is an opportunity for investors to pull out.
Reiterating her “neutral” stance on Bitcoin, Stockton said this week on CNBC’s “Squawk Box”:
When you see such strong, steep rallies, they’re more characteristic of countertrend moves. At one point, we had 14 consecutive up days this month for BTC. So, we’re sceptical to its sustainability and see it as countertrend.
The upcoming week is a crucial one for Bitcoin because of the Fed’s announcement. The CME FedWatch Tool currently signals a more than 98% probability of a 25 basis points hike this time.
Bitcoin has broken above its 200-day MA
Also on Sunday, a top trader and analyst, Peter Brandt warned of a near-term pullback in BTC. Others, including Michael van de Poppe and Credible Crypto have a similar opinion as well.
Interestingly, Bitcoin is now trading meaningfully above its 200-day Moving Average. Still, Katie Stockton said:
This has happened before and it proved to be a false breakout. So, we’re not convinced we have a breakout here. But it’s an incremental positive. We hope this manifests in our longer-term indicators which still very much point lower.
She’s not particularly constructive either on the benchmark S&P index that’s up more than 6.0% for the year at writing.