Merten Predicts Bitcoin Crash Before Moving Towards 6-Digit Levels
According to a popular crypto analyst and trader, Nicholas Merten, Bitcoin (BTC) is likely to go through a significant price drop. However, it might well act as the catalyst to finally shoot BTC to six digits.
Nicholas Merten, shared with the 495K subscribers to Data Dash YouTube channel that although the charts might look bearish, he remains optimistic about Bitcoin in the long term.
“We may be on the verge of a pretty harsh correction of over a 20% to 30% decline in Bitcoin’s price.
We’ve been bearish in the short term over the past couple of weeks and we believe that there is still more downside to go.
I’m still a long-term bull.
I believe that we’re still in a bull market, not a bear market… It’s very likely that we could see this correction, but at the same time, it could be the catalyst to finally set ourselves up on the next uptrend and charter towards the $150k range, $200k range for Bitcoin.”
Merten cautions that a potential price drop might be very sudden.
“When the sell-off does come it’s not going to be this… slow but steady sell-off of lower highs, lower lows.
I really feel we’re going to get something quite dramatic.”
The analyst also looks into Bitcoin’s recent rally when it moved up from a January 10th low under $41,000 to visit above $44,000 two days later, before retracing again on January 14th.
“We did have a little bit of a rebound… that got some bulls very confident that this was the end of the selloff, that prices were going to recover.
Those gains have quickly faded, and it looks like this is not only going to be considered a dead-cat bounce in price, which means the price will roll over but when we roll back down here, there really aren’t many ranges of significant support.”
BTC is likely to retest the low levels where it traded during the market crash in May of 2020.
“It’s just likely at this point… that we repeat what we saw back in May to some degree.
Having a correction down to this range [$29,000 to $30,000], getting people towards what I would define as max pain…
It basically defines the point of peak fear when everyone, even the bulls are convinced that we’re in a bear market.”
Bitcoin is currently trading at $40,836, down 2.33% on the 24-hour window.
