Bitcoin (BTC) faces massive headwinds despite ongoing rally, warns cryptoanalyst Nicholas Merten – here’s why
Analyst and trader Nicholas Merten has reservations about Bitcoin (BTC) despite the flagship crypto asset’s massive rally over the past week.
Merten tells his 511,000 YouTube subscribers that while the Bitcoin-to-Nasdaq stock index correlation looks bullish, the macro environment is unfavorable.
“I definitely have to say that this chart right here, the Bitcoin-to-Nasdaq ratio is what has me most excited. Seeing that we’ve been able to get above the 200-week and 200-day moving averages is definitely a very positive signs.
But as we saw here on the last trading day, we faded a lot of those gains. I have to see that it can last here because, according to the story, when we come up in this area [above $25,000]it doesn’t last here very long.
And we’re in a macro environment that for a riskier asset like Bitcoin, where there’s talk of its onramps when it comes to regulators shutting them down … we have the banking infrastructure around these assets paralyzing as we speak. Where will that liquidity come from?
I’m not saying that retail volume and speculators and just general investors like long-term hodlers can’t drive it up. But we haven’t even seen the typical correction of a typical crypto bear market.”
According to Merten, BTC is likely to be crushed by macroeconomic factors in the weeks ahead.
“I just don’t see how Bitcoin is going to do very well in this environment. And until we start to see a more continued divergence for Bitcoin away from the Nasdaq where it continues to lead, I can’t be too sure yet.”
Bitcoin is trading at $26,665 at the time of writing, up roughly 35% since March 10.
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