What Does Technical Analysis Say About Bitcoin? ‘Not Much Clarity In The Short Term,’ Says Analyst
By Benzinga
Technical analyst Altcoin Sherpa on Tuesday shared his technical outlook for Bitcoin (CRYPTO: BTC), 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.
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:
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.
