"In each of those instances, it took another 1-2 months for the correction to fully mature," Katie Stockton said.
The digital currency this week closed above its 50-day moving average for the first time since mid-November.
Stocks have a tendency to sell off in the months immediately after the initial Fed rate hike before eventually moving higher, according to the note.
"The loss of long-term momentum has implications for six to 12 months, suggesting bitcoin may remain range-bound," Stockton said.
"After the March 2020 bottom, breadth thrusts were common after even minor pullbacks, but they have been absent in recent months," NDR said.
Investors should use any potential relief rally as an opportunity to reduce exposure to equities, according to Stockton.
The last time the S&P 500 and Nasdaq 100 traded below their respective 200-day moving averages was in the second quarter of 2020.
A confirmed breakdown below $37,361 would set the stage for bitcoin to test secondary support around $30,000, Stockton said.
"This would dictate risk management via reduced [equity] exposure and top-down hedges," Fairlead's Katie Stockton said.
A sustained decline below $44,200 would put bitcoin's next support level of $37,400 in play, according to Katie Stockton of Fairlead Strategies.
Bitcoin "remains solidly in a long-term uptrend... and our long-term gauges still point higher despite having down-ticked this month," Stockton said.
"If initial support is broken, important long-term support will likely be tested, near $37.0K," Fairlead Strategies' Katie Stockton said.
While AMC and GameStop are about 60% below their record highs, the stocks are still up 1,004% and 645% year-to-date, respectively.
"The S&P 500 needs to rebound above 4540 to avoid a breakdown below its 50-day moving average, which would put next support near 4300," Stockton said.
"We expect bitcoin to confirm a breakout above $64,900 in its next upmove, which would then target a long-term measured move of $89,900."
"The pullback comes at a time when many market players are out of the office, contributing to low volume and high volatility," Katie Stockton said.
Standard deviation is a statistic measuring how spread out numbers are that investors use to determine an asset's volatility.
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