A widely followed crypto trader thinks that improving macroeconomic conditions and easing sell-pressure bode well for Bitcoin (BTC).
Pseudonymous analyst Altcoin Sherpa tells his 220,300 followers on the social media platform X that he’s flipping bullish on Bitcoin even though BTC’s market structure on the daily chart remains bearish.
“I am not personally too scared. Macro conditions + massive supply overhang seem mostly settled/bullish for us going into Q3/Q4.
I’m hoping we break the recent high at $70,000 and form a higher low. Bullish in the short-term.”
Last week, Fed Chair Jerome Powell alluded to incoming rate cuts in a speech at the Jackson Hole symposium.
According to the CME’s FedWatch tool, investors and traders now see a 61.5% chance that the Fed will cut rates by 25 basis points during the September Federal Open Market Committee (FOMC) meeting and a 38.5% chance that the Fed will slash rates by 50 basis points.
Meanwhile, the German government is done unloading billions of dollars worth of Bitcoin and the defunct crypto exchange Mt. Gox has until October to repay creditors about 142,000 BTC.
Looking at Bitcoin’s final hurdle, Altcoin Sherpa believes that BTC’s resistance at around $71,000 is exhausted after multiple tests.
“Resistance gets weaker the more times it’s tested. We’re coming back for more.”
Zooming in, the analyst predicts another Bitcoin surge as BTC forms a bull flag on the one-hour chart.
“Expansion soon for BTC.”
A bull flag is viewed as a continuation pattern, indicating that an asset is consolidating and gearing up for a fresh rally.
At time of writing, Bitcoin is trading at $64,104.
Generated Image: DALLE3