Top analyst issues crypto warning, says Bitcoin (BTC) and Ethereum (ETH) are showing signs of weakness
A closely followed crypto analyst says Bitcoin (BTC) and Ethereum (ETH) are flashing signs of weakness despite their respective bounces in recent weeks.
In a new strategy session, DataDash host Nicholas Merten tells his 515,000 YouTube subscribers that he’s keeping a close eye on the stock market as it could signal what’s to come for Bitcoin and Ethereum.
According to Merten, the stock market’s recent outperformance of crypto assets could be a hint that Bitcoin’s recent rally doesn’t have much gas left in the tank.
“What’s really telling here is how weak crypto has been compared to stock markets during this rally. Stock markets have rallied as much as 30%…
And you would expect that as crypto sells harder than stocks during downtrends, crypto should bounce back just as quickly and harder to the upside versus stocks. We don’t see this here.
We have seen a month long period of stagnation. While I don’t mean to sound too bearish here, I have to tell you all, this is starting to show some signs of weakness here where, we’re breaking below this rising wedge here with slower growing highs and faster growing lows, that puts bulls in a very bad position.”
Looking at Ethereum, the cryptoanalyst says that ETH is also underwhelming and has still not shown any signs that the bear market is close to being over.
“Ethereum has been leading. The ETH to BTC ratio has continued to gather strength. Take a look here at Ethereum, still only really up around $240 in the last month. I know it’s still a gain, a nice trip to the upside, a little over 10%…
It’s not bad, but it’s not phenomenal either. That’s not what I’m expecting here if we’re really going to get this inflection point…
ETH has made some significant gains in what is very likely – though I wouldn’t say absolutely – very likely a long-term extended bear market.”
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