The crypto market is going through a new phase of tension, as prices remain under pressure for several weeks. In this context, Katie Stockton, founder of Fairlead Strategies, identifies techn
The crypto market is going through a new phase of tension, as prices remain under pressure for several weeks. In this context, Katie Stockton, founder of Fairlead Strategies, identifies technical signals that could indicate a trend change. According to her analysis, bitcoin now shows a long-term oversold situation on two indicators monitored by her firm. This combination is rare and remains under watch. It could signal the approach of a major bottom, rather than a simple temporary rebound.
At the time when Grayscale identifies several forces likely to support Bitcoin adoption despite the bear market, Katie Stockton, founder of Fairlead Strategies, in turn observes an unusual technical signal on two long-term indicators used by her firm. Bitcoin shows a measurable oversold situation, while its momentum is also beginning to rise over a prolonged period.
For the analyst, this combination shows a possible exhaustion of the bear trend that has been in place for several months. She therefore believes that recent technical damage could gradually come to an end.
Her analysis relies on several graphic references, notably support levels and Fibonacci retracements. This tool helps identify areas where the price could encounter new demand after a previous fluctuation.
Stockton also uses the Ichimoku cloud model to spot levels likely to favor a reversal. She thus highlights the simultaneous presence of a measurable oversold condition and an improvement in long-term momentum.
Your 1st cryptos with CoinbaseThis link uses an affiliate program.This reading comes after a tumultuous August for the main market assets. The bitcoin price traded around $63,000 for much of the week, below its 20, 50, and 200-day daily moving averages.
At the same time, the Fear and Greed index remains at 34, a level corresponding to the fear zone. The stagnation of the SEC’s work on tokenization regulation also contributes to maintaining a bearish climate.
Despite this pressure, Stockton compares the current configuration to that observed on gold. She notes that the latter recently crossed its 50-day moving average during a pullback. According to her analysis, bitcoin currently has a higher probability of reaching a significant low than gold. She links this possibility to the extent and duration of the decline already recorded.
However, Stockton does not limit this reading to bitcoin. She also considers that Ether might have already reached its own major critical point, according to her chart analysis. She also includes Solana, XRP, and Hyperliquid to more broadly evaluate the momentum of crypto assets. This approach gives broader scope to the hypothesis of a trend change after a prolonged bearish period.
The analyst also recalls that smaller tokens tend to reach their highs and lows in sync with major assets. Bitcoin and Ether can therefore serve as benchmarks to assess the overall health of the market. If both assets really ended a prolonged bearish phase at the same time, this development would provide an important signal. It would distinguish a cycle change from a modest relief rebound.
In the short term, the evolution of supports, momentum, and oversold indicators will allow following this hypothesis. The next sessions will show whether these technical signals confirm themselves or if bearish pressure persists. The duration of the movement will therefore remain decisive to assess the scope of the possible major bottom.
In this scenario, no indicator alone suffices to confirm a lasting reversal. The reading depends on the continuation of long-term improvement. Support levels will remain monitored, as well as momentum movements. Stabilization could strengthen this reading, while a new deterioration would question the hypothesis. Ether will provide a benchmark. Bitcoin will remain at the center of the analysis.
