Nicholas Merten: Bitcoin Could Reach $4 Trillion Market Cap This Year
According to crypto strategist Nicholas Merten, a technical pattern for Bitcoin is signaling an upcoming rally and that “the bulls are in the lead.”
In a recent video update, Merten shared with the 509K subscribers to DataDash YouTube channel that Bitcoin is not in a bear market and that BTC recent stagnant price action is telling the whole story.
“There’s a really interesting technical pattern going on and this is a signal that the bulls are in the lead. Don’t let the sideways consolidation we’ve been in get you fooled that this is somehow a bear market.
I want to be very clear with you guys, a bear market in crypto historically is an over 50% correction, likely somewhere in the 70%, 80%, 90% range. That’s what a bear market is for an exponential asset like crypto.”
Merten refers to BTC’s most recent higher lows, and how they relate back to Bitcoin highs back in 2017.
“We’ve been seeing here all the while it’s been a shaky 2021 and a shaky start to 2022, we’ve been setting in higher lows that are interestingly enough not only pretty consistent with one another, but if you take into account the previous highs back in December 2017, you’ll notice that as we go through each of these lows, they line up each and every time.
Buyers are coming in and making previous resistance ascending support, and that is a really good telltale sign we’re not making really lower highs. The highs are relatively consistent… The lows are getting higher. The buyers are paying a premium here, and it’s showcasing that the market might be ready to turn back into forming the next uptrend.”
The analyst projects Bitcoin to reach an overall market cap of $4 trillion by the end of 2022, which would mean a $200,000 value per BTC.
“What we actually find that this ask we have here, this idea that Bitcoin could potentially rally up to $4 trillion sometime in October, November, to December of 2022, what we’re really asking for is just a 220% return from the previous all-time highs.
The last rally we had from previous all-time highs was a 392% move. Before that, it was a 359% move and on much shorter time frames than what we’re asking for here.”
