Nicholas Merten: Crypto Market To See A Final Flush Before Turning The Tide

According to a prominent crypto market analyst and trader, Nicholas Merten, the crypto market is going through a long-term consolidation. However, based on leading indicators, this will turn around at the end of a “final flush.”

In a recent video update, Merten shared with the 496K subscribers to DataDash YouTube channel, that traders are generally bullish on crypto and the prices will eventually climb back up once emotions are cast aside.

The crypto fear and greed index that measures market sentiment went from December’s “fear” to “extreme fear” during this month, which might become an issue for higher-leverage traders.

“Even though the bearish sentiment is still present in the market, it’s very clear by most of the leading indicators we need to see the final flush.

We need people to be at a position where they’re either getting liquidated out of their positions or they’re flipping the coin, they’re down in their excessively-leveraged long position.”

According to Merten large investors will benefit from the bear market, as they buy more at lower prices to increase their holdings while traders try to short the market could be liquidated.

“As everyone’s piling into the shorts, as the short positions build up on the spot market, whales who like to buy real fiscal Bitcoin are going to buy heavy.

They’re going to drive the price higher and cause even more pain liquidations for the emotional traders. That’s how it works. 

Greener pastures rallies and prices are usually found in fear from emotional traders and investors. In the market, the emotional traders fuel the kind of price action that institutions like to buy.”

At time of writing, Bitcoin is trading at $36,331, down 10.6% on the daily chart.