The crypto market bloodshed continued this with Bitcoin (BTC) falling all the way to below $53k last night before bouncing off to the current levels of above $54k. The BTC price is actually down 8% since the start of September.
However, as Bitcoin faces raging waters, expert crypto analyst @AltcoinSherpa offered his views on X and issued a cautious outlook for the leading cryptocurrency.
Altcoin Sherpa shared his thoughts in a fresh tweet, stating there is a good chance that Bitcoin’s recent price corrections will continue to dip. We could see it touch $45,000, he said. He mentioned that the long-term picture is still looking bullish, but the short-term prospects are far from certain.
Bitcoin’s Path to $45,000: Technical Analysis
The crypto expert, Altcoin Sherpa, with about 222.5k followers, pointed out $45,000 as a key level to watch for Bitcoin in the coming days.
He mentioned that this level is “an untapped area of liquidity” and a compelling support zone, especially as it falls within the 0.50 Fibonacci retracement from the upward trend since 2022.
The chart analysis supports his theory, showing that Bitcoin has already broken through the $51,412 level, a crucial 0.382 Fibonacci zone, which has been tested multiple times.
Image source: X/AltcoinSherpa
Sherpa warns that support weakens the more times it is tested, indicating that the $51,000 and $49,000 zones may not hold for long. “The 51k areas have already been tapped several times,” Sherpa writes, suggesting that the next major support level is around $45,000.
Moreover, the analyst mentioned that Bitcoin’s price spent about two months consolidating around the $45,000 level, making it a more solid area of support compared to the weaker $50,000 region.
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Show more +Show less – Short-Term Bounces Expected, but Retrace Likely
Altcoin Sherpa doesn’t foresee a straight drop to $45,000, predicting several short-term bounces at $51,000 and $49,000.
However, he pointed out that these levels have already been tested and are losing strength, confirming his forecast that a return to $45,000 for Bitcoin is probably imminent.
The analyst is nonetheless cautiously bullish about Bitcoi’s long-term prospects, pointing out that market cycles often include retracements.
Based on Bitcoin’s price activity in 2021, Sherpa thinks that if macroeconomic conditions are right, the cryptocurrency might rise to new heights.
However, in the short term, he urges traders to prepare for “rough waters ahead.”
Read Also: Why Now Is the Time to Accumulate Bitcoin, as ‘Uptober’ and US Elections Loom
Market Sentiment: Bitcoin ETF Outflows
At this time, the broader market sentiment appears to align with Sherpa’s prediction, indicating its support of the bearish outlook.
Crypto analyst @WuBlockchain stated that Bitcoin ETFs have experienced significant net outflows in a recent tweet.
On September 6, Bitcoin spot ETFs saw a net outflow of $170 million, which was the eighth consecutive day of withdrawal. Grayscale’s GBTC also saw $52.87 million in outflows, while Fidelity’s FBTC witnessed $85.52 million in outflows, pushing the total net asset value of Bitcoin spot ETFs below $50 billion.
On September 6, the total net outflow of Bitcoin spot ETFs was $170 million, and the net outflow continued for 8 consecutive days. Grayscale ETF GBTC outflowed $52.871 million, and Fidelity FBTC outflowed $85.52 million. Currently, the total net asset value of Bitcoin spot ETFs…
— Wu Blockchain (@WuBlockchain) September 7, 2024
Finally, these withdrawals suggest a potential reduction in institutional demand for Bitcoin, which could further fuel the ongoing price decline. As large investors exit their positions, it adds selling pressure, potentially driving the price lower toward the $45,000 target.
Read Also: Here Are Top 10 Meme Coins With Highest Liquidity on Exchanges – DOGE and SHIB Don’t Make the List
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