• Katie Stockton of Fairlead Strategies predicts a pullback in Bitcoin due to the recent rally.
• Bitcoin has climbed roughly 40% since the start of 2023 and has now surpassed the key $23,000 level.
• The upcoming week is a crucial one for Bitcoin as the CME FedWatch Tool signals a more than 98% probability of a 25 basis points hike this time.

The recent rally of Bitcoin has been cause for both celebration and caution. Katie Stockton of Fairlead Strategies has recommended caution, as the recent rally could reverse just as easily. Since the start of 2023, Bitcoin has climbed roughly 40%, surpassing the key $23,000 level. Stockton expressed her „neutral“ view on CNBC’s „Squawk Box“, warning that strong, steep rallies are more characteristic of countertrend moves and that she is sceptical of its sustainability.

The upcoming week is a crucial one for Bitcoin. The CME FedWatch Tool currently signals a more than 98% probability of a 25 basis points hike this time. This could have a significant impact on the price of Bitcoin. In addition, top trader and analyst Peter Brandt has warned of a near-term pullback in BTC, and others have echoed this opinion.

Despite the warnings of a price pullback, Bitcoin is currently trading meaningfully above its 200-day Moving Average. To ensure the sustainability of the rally, investors must watch closely how the Fed’s announcement influences Bitcoin’s price. Although the rally has been strong, it is not yet clear if it is sustainable in the long term. Therefore, caution is recommended when investing in Bitcoin.