Cryptocurrency analyst Nicholas Merten indicates a negative outlook for Bitcoin (BTC)
Nicholas Merten, a cryptocurrency analyst, has expressed a pessimistic view on the future of Bitcoin (BTC) as its price lingers around $94,000. The owner of the DataDash channel warns of a potential significant decline in Bitcoin within the upcoming two weeks.
Worrying Signals in Bitcoin and Possible Decline
Merten has reported observing troubling signs in the price movements of Bitcoin and altcoins. He has also highlighted that the macroeconomic data indicates an unfavorable trend.
Merten points out that the 21-day exponential moving average (EMA), previously a support level, has now become a crucial resistance point for Bitcoin. Failure to surpass this resistance level may result in a decline of Bitcoin to approximately $80,000.
Altcoins May Also Decline with Bitcoin
The likelihood of a correction in Bitcoin negatively impacting altcoins is high. Merten suggests that a Bitcoin downturn could lead to a significant decrease of 25-30% in altcoin values. He emphasizes that Bitcoin’s price movements, coupled with a potential decline in altcoins, signal concerns about the current market conditions.
Presently, Bitcoin is being traded at about $93,824. Should the resistance level at the 21-day EMA remain unbroken, Merten anticipates a movement towards the 100-day EMA at $85,000. A breach of this level could potentially drive Bitcoin’s price down as far as $76,000.
Given the prevailing market anxiety in the cryptocurrency sector, traders are advised to exercise caution. In this uncertain environment, a review of investment strategies has become increasingly crucial.
