Crypto analyst Nicholas Merten is leaning bearish on Bitcoin (BTC) as the top crypto asset hovers around the $94,000 price tag.
In a new video update, the host of DataDash presents tells his 510,000 YouTube subscribers that he expects Bitcoin to suffer a “major collapse” in the next two weeks.
“Not only is Bitcoin starting to show really worrying signals with its price action, we are obviously also seeing altcoins follow suit. And even the macro recession indicators are starting to flare up significantly.”
According to Merten, the 21-day exponential moving average (EMA) – which previously acted as a support level – is now acting as a resistance zone for the crypto king.
Consequently, the analyst warns that Bitcoin could now dip below the $80,000 price.
“If we essentially deal with the 21-day [EMA] resistance, we are looking for our next major moving average link as potential support. And the earliest we’re likely to get there is probably the 100 days [EMA] which here amounts to about $85,000…
So somewhere in the low $80,000 range. If not, we’ll probably move to the 200 days [EMA] which amounts to approximately $76,000.”
Merten further notes that a Bitcoin correction would be devastating for altcoins.
“I’m not saying this is the end of the world, but I am saying this is a pretty significant correction where, from top to bottom, we could probably see a 25% to 30% pullback…
That’s not something that would mean the end of the world, but it will be a pretty bad situation for altcoins.”
Bitcoin is trading at $93,824 at the time of writing.
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Generated image: Midjourney