Katie Stockton, founder and managing partner at Fairlead Strategies, noted that the price of Bitcoin fell below the 50-day moving average, which could be a harbinger of another big downside move.
The analyst now sees higher risks to the long-term downtrend as Bitcoin has lost momentum.
The major cryptocurrency is currently trading at $21,432, having gained a modest 0.46% over the past 24 hours.
Notably, on August 20, it fell to $20.769, the lowest level since July 26.
Stockton believes that the price of bitcoin will stabilize in the near term. However, after a short-lived recovery, it is likely to drop to the $18,000 level, according to the analyst, and the currency is now seeing waning momentum.
Is the Bitcoin price waiting for more volatility?
Riskier assets, including Bitcoin, are likely to see more volatility ahead of US Federal Reserve Chairman Jerome Powell’s speech at a seminar on Friday in Jackson Hole, Wyoming.
The US Federal Reserve’s comments are likely to give market participants a much-needed insight into whether the bank plans to maintain its aggressive rate hike policy for the remainder of 2022.
The stock market was hit on Monday by mounting fears of another interest rate hike in September.
Notably, the US Federal Reserve announced an interest rate hike of 75 basis points in June and July, as the cryptocurrency market was hit hard by the unfavorable macro conditions this year, and Bitcoin is currently trading around 69% below its benchmark price.
Source: BARRONs