What Does Technical Analysis Say About Bitcoin? 'Not Much Clarity In The Short Term,' Says Analyst

Technical analyst Altcoin Sherpa on Tuesday shared his technical outlook for Bitcoin BTC/USD, suggesting that “not much clarity in the short term” should be expected.

What Happened: Sherpa advised his followers to consider bidding for Bitcoin if they believe the lows for the digital currency are in, particularly if prices reach the $56,000-$58,000 region. He further suggested that trades should be cut if Bitcoin drops below $54,000, as he believes it could signal a return to lows around the high $40,000 region. However, if Bitcoin consolidates and appears stable, the analyst sees a potential run at the range highs again at $70,000.

could be kind of like September 2023 price action where price interacts often with the 200d EMA and we see a lot of chop/not much clarity in the short term for $BTC. No strong opinion in either direction; btc still bearish on the 1d market structure wise pic.twitter.com/ImWpDAsjnC

— Altcoin Sherpa (@AltcoinSherpa) August 13, 2024

Despite these suggestions, he expressed no strong opinion in either direction and described Bitcoin as still bearish on the 1-day market structure. Sherpa drew parallels between the current price action to that of September 2023, a period that was also characterized by uncertainty.

Also Read: Bitcoin Will Outperform Gold, Ethereum And Even Nvidia, Trader Claims

Why It Matters: Altcoin Sherpa's cautious approach reflects the current uncertainty in the market, with many investors unsure of the short-term direction of Bitcoin and other cryptocurrencies. His trading idea to stay out of positions could be seen as a prudent strategy in these uncertain times.

Over the past year, Bitcoin prices have surged by 101.5% to a current valuation of $1.17 trillion, accounting for more than 50% of the total crypto market capitalization.

IntoTheBlock noted that despite price volatility and uncertainties, over 71% of holders have had their coins for more than one year. 24% of holders have had their coins between one and twelve months.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Three Catalysts that Could Send Cryptos Soaring by Year-End

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.