Fairlead Strategies founder Katie Stockton says Bitcoin (CRYPTO: BTC) remains attractive from a "very, very long-term" perspective, even as the asset repeatedly tests a key support zone.

75% To 80% Drawdowns Still Expected

In a CNBC interview on June 26, Stockton outlined Bitcoin’s $59,000 to $60,000 range remains an important technical support area after multiple retests.

She noted that Bitcoin recently failed near its 200-day moving average, which acted as resistance, and has since trended lower. It is in a long-term oversold condition that has persisted long enough to potentially influence the chart.

"Knowing the volatility, it’s down about 30% after failing right at that 200-day moving average," Stockton said.

"We’re looking for stabilization," she added, adding that ideally Bitcoin holds the current range because it lines up with a key Fibonacci retracement level.

If Bitcoin loses the current support zone, Stockton predicts the next major support could sit in the low $40,000s.

"I think we can still see those 75% to 80% drawdowns," stated Stockton, adding that volatility can create opportunity for traders using trend-following signals.

Still, Stockton pushed back against the idea that Bitcoin’s institutional adoption and spot ETFs eliminate the possibility of large drawdowns.

Price Action: Over the past week, BTC prices dropped around 8% as sentiment continues to remain in the “extreme fear” zone amid heavy ETF outflows.

"Bitcoin Bull From A Very, Very Long-Term Perspective"

Stockton stressed that she is not focused on Bitcoin’s four-year cycle framework, arguing there are not enough historical cycles to rely on them with confidence.

Instead, she is watching for downside exhaustion and a convincing shift in momentum.

"I’m a Bitcoin bull from a very, very long-term perspective," Stockton said.

She added that buying into weakness is psychologically difficult but often proves to be the right move once momentum begins to stabilize.

The interview noted that investors often want to buy BTC when it is rising sharply but hesitate when prices fall.

Stockton called that "market psychology," saying she would prefer to see two to three weeks of stabilization near current levels before feeling more confident that support is holding.

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