Another big sell-off is coming for Bitcoin (BTC), popular crypto analyst says – here’s his target
Widely followed crypto analyst Nicholas Merten says there is another big selling event on the horizon for Bitcoin (BTC).
In a new video update, the host of DataDash tells his 515,000 YouTube subscribers that he sees the king crypt having another meltdown before finding a strong support level in the $12,000 to $14,000 range.
“Do we have another sale coming up? …Should we get one last drop in prices and build a base on a probably more solid base channel around $12,000 to $14,000 for Bitcoin? Is it so stupid to think that it could happen?
Merten mentions net unrealized profit and loss (NUPL), an on-chain indicator that essentially shows whether Bitcoin holders are in a state of profit or loss. When NUPL is above zero, there are more investors in profit than in loss. Below zero, more investors nurse losses than reap profits.
He says Bitcoin’s NUPL hasn’t stayed in negative territory long enough to safely assume the downtrend is over.
“Periods when we are at the tops of the bull market, the NUPL model reads somewhere around 0.7 to 0.75, really overbought periods, and we start to chart into negative territory where the price is lower than the average price most Bitcoin moved to on the chain.
Now you can see when we go into this blue range, as we did for a brief period in June, we tend to hang in this range for a while during typical bear markets.”
The closely followed analyst says that BTC could be entering uncharted territories as it has never traded through a period of monetary tightening and interest rate hikes. He also says he doubts the Federal Reserve will end up swinging back to quantitative easing anytime soon as it has in the past.
“I want to emphasize one big thing. In all of the 10, usually 12 years that Bitcoin has been liquid traded on exchanges, we have never had a full 50% recession or near depression correction or bear market in stocks. We’ve had your typical 20% bear markets, where things start selling 20% to 30%, where things sell [and] The Fed comes to the rescue, saves the day.
[However] The Fed can no longer do what it has done before, not unless it cools inflation… If the Federal Reserve were to print more for some reason and try to save the day, they are going to make the problem big. The Fed can’t do that in a world of supply chains [issues]of talent shortages in the economy, low labor force participation and all the worries about commodity prices.”
Bitcoin is changing hands at $19,856 at the time of writing, a fraction of the day’s gain.
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