Nicholas Merten, a standsย out cryptocurrency analyst and host of ourย trending DataDash YouTube channel, recently delivered an eye-opening session to his 511,000 subscribers. Contrary to the common narrative of an imminent Bitcoinย (BTC) recovery, Merten expressed concerns over theย capacity for a continued downward tendency in BTCโs price.
Reportsย by Merten, BTCโs current market behavior suggests a potential shift in momentum toward a sustained bearish phase in the monthsย ahead. His analysis forecasts a drastic fall for Bitcoin, potentially reaching around $12,000 by September.
In technical analysis, momentum indicators are used to identify the speed or price at which the price of an investment increases or decreases for a set of returns. Merten impliesย that BTCโs momentum indicator on the weekly timeframe mayย be signaling a shift in market sentiment from positiveย tendency to bearish.
Interestingly, Merten observes a change in the relationship betwixt Bitcoinย (BTC) and technology stocks. Historically, Bitcoinย (BTC) has often moved in correlation with tech equities, but this pattern seemsย to be changing. Althoughย while shares of tech giants such as Microsoft and Nvidia are experiencing positive momentum, Bitcoinย (BTC) appearsย to be lagging behind, struggling with its current price level.
Regardlessย of Bitcoinย (BTC) making some noteworthy strides inย theย previous few months, Merten urges his viewers to question the sustainability of this growth. Whether one purchased Bitcoinย (BTC) back in November or is contemplating entering the market now, the analyst advises self-reflection on whether Bitcoinย (BTC) will continue to outpace other financing opportunities.
Itโsย worthย notingย that, Merten brings up the concept of support and resistance levels, which are fundamental aspects of technical analysis used to predict price movements. They essentially define the levels at which buying and selling pressures are expected to intensify.
Merten describes that the price range that previously served as a levelย ofย support during the last bull market is now acting as a resistance level. Itโsย notableย that a levelย ofย support becomes a resistance level once the price falls below it, and vice versa.
Contrary to numerous investorsโ expectations, Bitcoinย (BTC) didnโt reach the upper band of around $32,000 to $33,000, a range numerous had targeted as a selling point. Merten cautions that continually shifting expectations and not taking profits may leave investors in a predicament if the digitalย currency doesnโt meet these lofty goals.
