Crypto analyst Nicholas Merten has raised concerns about the future of Bitcoin (BTC) as the cryptocurrency struggles to maintain its value around the $94,000 mark. In a recent video update on his popular YouTube channel DataDash, Merten shared his bearish outlook on the market, predicting a potential “major collapse” in the coming weeks.
Merten pointed out that Bitcoin is currently facing significant challenges in terms of price action, with key support levels being breached. The 21-day exponential moving average (EMA), which previously provided support for Bitcoin, has now turned into a resistance zone. This development has led Merten to warn that Bitcoin could see a sharp decline below $80,000 in the near future.
“If we essentially are treating the 21-day [EMA] resistance, we’re looking for our next major moving average pairing as potential support. And the earliest that we’re going to probably reach there is probably the 100-day [EMA] which is down here at around $85,000… So somewhere in the low $80,000 range. If that doesn’t hold, then we’re likely moving to the 200-day [EMA] which is down at around $76,000,” Merten explained.
Merten also highlighted the potential impact of a Bitcoin correction on altcoins, noting that a significant pullback in Bitcoin’s price could lead to a 25% to 30% decline in the broader cryptocurrency market. While he clarified that such a correction may not be catastrophic, it could pose challenges for altcoins in the short term.
The current price of Bitcoin stands at $93,824, with Merten’s analysis suggesting a potential downward trend in the near future. As investors brace for potential market volatility, Merten’s insights serve as a valuable guide for navigating the uncertain waters of the cryptocurrency market.
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