Bitcoin (BTC) continues to dominate the crypto market with its impressive rally, currently hovering around the $94,000 mark. However, crypto analyst Nicholas Merten of the popular YouTube channel DataDash is issuing a stark warning about a potential significant pullback in BTC’s price over the next two weeks.
Key Predictions and Analysis
- Bearish Sentiment for Bitcoin:
- Merten expects a “major collapse” in Bitcoin’s price, citing worrying trends in price action, altcoin performance, and broader macroeconomic indicators.
- He highlights Bitcoin’s struggle with the 21-day exponential moving average (EMA), which has shifted from a support level to resistance.
- Potential Price Levels:
- If the 21-day EMA holds as resistance, Bitcoin could test the 100-day EMA, estimated around $85,000.
- Should this level fail to hold, the 200-day EMA near $76,000 could act as the next major support zone.
- Merten predicts a possible 25-30% pullback, which could see BTC dip below $80,000.
- Impact on Altcoins:
- A Bitcoin correction of this magnitude could spell trouble for altcoins.
- Merten notes that while the correction wouldn’t mark the end of the market cycle, it would result in significant losses for alternative cryptocurrencies.
Market Context
At the time of writing, Bitcoin is trading at $93,824, showcasing strong year-to-date growth. However, Merten’s bearish outlook comes amidst broader concerns about macroeconomic recessionary signals, which could amplify volatility in the crypto market.
Merten’s analysis serves as a caution for investors amid Bitcoin’s current rally. While BTC remains a market leader, its potential pullback could have cascading effects across the crypto space, especially for altcoins. Traders and investors should keep a close watch on key support levels and broader market trends.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
