Key Support and Consolidation Indicators
Crypto analyst Altcoin Sherpa has identified the $75,000 to $87,000 range as a likely bottoming zone for Bitcoin, suggesting it as the "next area up." This prediction is supported by technical indicators, including the 200-day Exponential Moving Average (EMA) and trading volume. The current price action exhibits lower highs and a fragmented uptrend, with volume data indicating a decrease in selling pressure. While Bitcoin has recovered from a significant correction, this specific range is seen as a crucial support level.
The chart analysis highlights Bitcoin's journey in 2025, noting its rapid ascent from below $50,000 to highs exceeding $120,000, largely driven by the approval of spot Exchange Traded Funds (ETFs) and institutional interest. However, a subsequent reversal led to a decline through key moving averages and a dampening of bullish momentum. Sherpa's detailed chart overlays a horizontal channel between $75,000 and $87,000, correlating with historical support levels.
Technical Indicators and Chart Analysis
The 200-day EMA, which is currently sloping upwards but has been tested multiple times, is identified as a significant psychological anchor. The accompanying volume bars show a declining trend, suggesting that sellers are losing conviction. A red descending trendline originating from the July peak further illustrates the impact of recent volatility, with price action consistently forming lower highs and breaking the established uptrend.
Market Dynamics and ETF Inflows
This technical outlook is grounded in Bitcoin's historical market cycles. Previous bear markets, such as the one in 2022 where Bitcoin experienced a drawdown of over 70%, often found their bottoms near long-term EMAs amidst periods of capitulation. The current market environment is further influenced by consistent weekly inflows into spot Bitcoin ETFs, which have stabilized around $2 billion according to recent on-chain data. These inflows are providing a buffer against significant downside pressure.
However, ongoing macroeconomic factors, including persistent inflation figures and delays in anticipated interest rate cuts by the Federal Reserve, could extend the current period of consolidation. Altcoin Sherpa has cautioned that even if the $75,000 to $87,000 range holds, the market may experience several weeks or months of sideways trading, often referred to as "chopping around." This phase could be reminiscent of the summer consolidation in 2023, during which Bitcoin traded within a narrow range for approximately 90 days before embarking on a significant upward move.
Trading Strategies and Investor Outlook
For active traders, the prevailing advice is to prioritize patience over impulsive reactions. Short-term traders might consider opportunities for intraday gains by observing bounces off the 50-day EMA, which is currently situated near the $92,000 level. Long-term investors, on the other hand, are encouraged to view any dips within the identified $75,000 to $87,000 target zone as potential accumulation opportunities. The performance of altcoins, which are often closely correlated with Bitcoin's price movements, may continue to lag until Bitcoin establishes a more robust base. This could potentially delay the onset of a broader altcoin season.
As Bitcoin navigates this critical juncture, Sherpa's analysis highlights a fundamental principle in cryptocurrency markets: periods of quiet consolidation often precede significant upward trends. With increasing global adoption, including potential nation-state adoption and further integration into decentralized finance (DeFi), the $75,000 to $87,000 range could serve as a foundation for future price targets exceeding $150,000 in 2026. Maintaining vigilance and conducting thorough research remain paramount for investors navigating the evolving cryptocurrency landscape.