Bitcoin has broken below an important technical level, which could signal further downside for the cryptocurrency, according to Katie Stockton, founder and managing partner at Fairlead Strategies.

Bitcoin (BTCUSD) has fallen below its 200-day moving average at $109,800, Stockton wrote in a Monday note. The 200-day moving average is one of the most widely followed indicators that may be used to define a long-term trend, and also acts as a support level for bitcoin in this case.

"We assume the corrective phase will keep hold of bitcoin for another few weeks," based on technical indicators, Stockton wrote. Bitcoin's next support level stands at around $94,200, she said.

Still, the long-term momentum of bitcoin remains positive, she noted, eyeing a potential price target at $134,500 in the long term if the technical trend is complete.

Bitcoin fell 3.9% on Monday to trade at around $106,400, as some large bitcoin holders sold part of their holdings, based on blockchain data.

It is unclear what triggered the move lower, analysts at crypto trading firm QCP said. "Recent selloffs, including today's, came with no clear macro catalyst," they wrote.