Nicholas Merten Projects Bitcoin To Break Sideways Trend Soon

According to a top crypto market analyst, Nicholas Merten, Bitcoin’s (BTC) market conditions could soon be ready for it to break the trend of moving sideways.

In a recent video update, Merten shared with his 512K YouTube subscribers that Bitcoin’s recent inactivity is nothing new and a part of its market cycle.

“The way Bitcoin and the broader market is acting at the moment right now, I’ve seen it too many times to count.

Weak hands have flushed out those who are kind of trading and speculating in the short term, who are fearful of Bitcoin, the short-term holders.”

It’s usually whales that with their massive buys trigger the bull runs which usually are followed by large price drops.

“The silence and sideways price action is what follows after you’ve had major corrections over 50% or more in price.

You have silence for a little while, consolidation.

And then you have step number three: in the midst of the silence, out of nowhere someone is going to come in and buy up big.”

Looking into macro perspective, the analyst points out that it would make sense to have further sell-side pressure amid the current geopolitical situation, however, he sees Bitcoin keeping relatively stable.

“If there is any opportunity for Bitcoin to enter into a bear market, right now would be the time.

When there is global geopolitical conflict between Russia and Ukraine, when there is massive inflation concerns, all these macro factors…

Bitcoin really should be moving lower, at least according to the narrative. But it’s not.”

Merten looks into Bitcoin’s 1-year HODL waves, which is a metric tracks of Bitcoin that has not been moved over a year.

The amount of stored Bitcoin held over a year is at 63-64%, the highest level since August 2020 and January 2016, the analyst notes.

“Want to know what happened every single time we got up above this 60% band?

Bitcoin’s price, whether it was exiting the capitulation phase of a bear market and rising up higher, or a mid-cycle correction, it’s what drove the last two rallies.”

Bitcoin is down a percent on the day and is exchanging hands at $39,472 at time of writing.