A well-known crypto trader, known as Altcoin Sherpa, is feeling optimistic about Bitcoin’s future. Despite some bearish signals on the daily chart, he believes that improving economic conditions and a decrease in selling pressure are good news for Bitcoin.
Macro Factors and Supply Overhang
Sherpa is particularly encouraged by recent economic developments. The Federal Reserve hinted at potential interest rate cuts, which could boost the crypto market. Additionally, the German government has finished selling its Bitcoin holdings, and the Mt. Gox exchange is nearing the end of its creditor repayment process, which involved a large amount of Bitcoin. These events are seen as positive for Bitcoin’s supply dynamics.
Resistance Levels and Bullish Patterns
Sherpa believes that Bitcoin’s resistance level around $71,000 has weakened after repeated tests. He expects Bitcoin to break through this level and potentially reach a new high.
Looking at shorter-term charts, Sherpa sees a bullish “bull flag” pattern forming on the one-hour chart. This pattern suggests that Bitcoin is consolidating before a potential surge in price.
Conclusion
Overall, Altcoin Sherpa is bullish on Bitcoin in the short term. He believes that the combination of improving macro conditions, easing supply pressure, and bullish chart patterns suggests a positive outlook for the cryptocurrency.
