Experienced Analyst Katie Stockton Issues Warning on Bitcoin: “This is the New Support Level, an 80% Drop is Still Possible”

Katie Stockton, founder of Fairlead Strategies and a renowned technical analyst, appeared on CNBC’s “Squawk Box” program to discuss the latest developments in global markets and critical technical levels for Bitcoin.

Stockton noted that the overall stock market rally continues, but issued important warnings for Bitcoin investors, both in the short and long term.

Stockton, in his analysis of Bitcoin’s technical outlook, noted that support levels have shifted upwards. He stated that the critical support zone, previously around $80,600, has now risen to the $84,000-$85,000 range according to Fairlead’s “cloud pattern” indicator.

The analyst said Bitcoin responded positively to the rebound from the oversold region and therefore has a more “constructive” outlook in the short term.

Despite short-term recovery signals, Stockton pointed out a significant deterioration in Bitcoin’s monthly charts. Stating that momentum indicators are showing a downward trend, the expert predicts that the cryptocurrency market may face a challenging period as it enters 2026. Stockton warned that Bitcoin could enter a wide range of sideways movement or a downtrend rather than an uptrend.

Stockton, also addressing the sharp price movements in Bitcoin, argued that the 80% losses seen in the past are still theoretically possible. While institutional investor participation is expected to reduce volatility, Stockton added that the market has not yet reached this maturity and that a long-term loss of momentum will create a more volatile market environment.