Merten: Crypto Correction Is Not Over Yet – Good For Long-Term?
According to a widely-followed crypto market strategist, Nicholas Merten, the on-going Bitcoin and crypto market correction is not over yet. However this might be good for what’s to come.
Merten shared in episode of DataDash to his 480K subscribers on YouTube that he believes the total crypto market capitalization value will continue to move further downside.
“Where do I think we’re heading? I think we’re generally going to head towards the $2.4 trillion range.
A full, nice, clean, 20% correction in market valuation.”
According to the analyst, the current correction period could set stage for crypto’s next “super wave” rally that takes the entire market to completely new, higher levels.
“We’re probably going to be zig-zagging around this range [$2.59 trillion] and eventually setting up the framework for a breakout.
How long that’s going to take? I don’t know, specifically, and I don’t want to make any big, rampant calls on what’s going to happen here. I think this is the range here where you’d want to add in if you’re looking to average into the market and catch up some new positions before the next super wave within the crypto market.”
At time of writing, the total crypto market value cap is at $2.59 trillion.
Bitcoin (BTC)
Regarding the leading crypto asset by market cap – Bitcoin – Merten talks about the on-going bearish speculation that BTC may be forming a bearish double top pattern around the $60,000 level.
“I wouldn’t be too concerned about this, I don’t think it’s a double top.
We’ve clearly set in new all-time highs here and started to hover around this previous resistance range [$60,000], but we’re going to get a couple more retests of this.”
According to the strategist on the short-term time frames, Bitcoin price might appear uncertain. But, zooming out reveals that the leading crypto is currently in the same price range that it was in October and earlier this month.
“The big thing I would ask that you do for your mental health, don’t get caught up looking at the five-minute chart like this, it’s going to make it look like everything is going to crap. In reality, Bitcoin has done phenomenally well. This is generally the range we were hanging out pretty much through all the way through October in early November, it’s not that bad.”
At the time of writing Bitcoin is trading at $59,635, down 11.7% on the weekly chart.
