Nicholas Merten Explains Why Bitcoin Correction Is Good For The Market
According to a prominent crypto analyst Nicholas Merten, Bitcoin (BTC) could drop further, but smart money will buy it at lower prices and send it on a counter rally.
In a recent video, Merten shared with the 491K subscribers on DataDash YouTube channel that the Bitcoin market is going through a “unique cycle.”
“We’re just going through our own unique cycle here, a market that’s driven by credit and leverage.”
Regardless of the uncertain market conditions, there seems to be light at the end of the tunnel, according to the analyst.
“And if you guys want a bit of comfort here as we’ve been seeing again Bitcoin coming down in price, I think what’s very realistic is that we’re going to come back down here towards around $600-$650 billion (Bitcoin market cap).”
At the time of writing Bitcoin market cap stands at $808 billion. Should it fall down to $600 billion it would represent a 25% drop. However, according to Merten the correction will ultimately be good news for the market.
“And that’s going to allow us to establish a higher low either along this line of ascending support on top of the previous resistance point of the 2017 cycle, and/or possibly we might see it bounce sooner rather than later around the $650-$700 billion range.”
Smart money buyers will be looking for an imminent Bitcoin bounce as a tremendous buy signal, the analyst points out.
“Why would we see that? Because that is going to be the indication that the market is not entering into a bear market. In fact, smart money is going to come in and buy into the fear and drive prices higher into 2022.
