A much-followed crypto analyst says Bitcoin (BTC) gives reason for its bulls to worry.
In a new DataDash update, Nicholas Merten says tells its 512,000 YouTube subscribers that it’s getting “scary” for BTC bulls as weekly price action exhausted starts to look like resistance.
[3.30] “As we zoom out to those longer-term time frames that are more important, this is where things get really scary for the bulls and they are playing into our long-term contention that we are still in a bear market and this is a compounded relief. rally about 100% from those relative lows…”
Merten believes that both BTC and Ethereum have yet to hit new lows in the bear market, in part due to unfavorable macroeconomic conditions. He shares a chart showing that BTC could make another low in the coming months at a descending support line near USD 12,000.
Merten also says the large legacy markets, which often correlate with crypto, point to downward action. Looking at the NASDAQ, the analyst says he plans to reduce its strength and instead place short positions near $13,750 where the price was rejected in August.
“So as we approach $13,750, that’s the key level here on the [NASDAQ]. That’s where I’m going to look to potentially build a short position.
This is already within a range where I would say I would feel comfortable building that short position. Many of the technical plays are feeling overbought, overheated, and especially as we move past this previous short-term resistance range around March.
It’s exactly what happened here in August. We saw some chopping around $13,300, we went down a little bit in a shorter time frame, we came up to a slightly higher level, and we encountered resistance at this previous support range around $13,750. It served as resistance. So that’s the name of the game here guys, get ready for those levels, start building positions and put that bet down.
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