Top analyst issues ‘final warning’ for Bitcoin, says there are clear signs of what’s coming next
Popular crypto analyst Nicholas Merten warns that Bitcoin’s (BTC) recent surge of over 56% does not necessarily mark the start of a new bull market.
In a new video update, the host of DataDash tells his 511,000 YouTube subscribers that after BTC’s rally from the bottom, the flagship cryptocurrency is likely to reverse its price trend.
“We have seen stagnation in momentum since roughly the end of January, signs of distribution where institutions are taking advantage of the upward market order flow and buy-side pressure from retail and other speculators and traders in the market.
On top of that as well, we’ve seen the leading indicator that we use for trend reversals flash that it’s probably moving lower after a 5% move that we got yesterday. We were already starting to get some warning signs the other day, showing that the momentum had stalled and a trend reversal is likely underway, but we got a clear decisive move at 5%, the biggest candle we’ve had since back. January 20…
We are seeing signs that the vast majority of this potential emergency meeting, I believe, has already recorded. That is what I want to say here today. The vast majority of those returns have come in, and I think we’re seeing some clear signs that this is not the beginning of another bull market.”
Merten also says there are clear indications that the bear market is not yet over, including the recent crackdown on efforts by US regulators.
“Why am I so confident about this? Because it’s not just Bitcoin, and it’s not just Ethereum. A lot of investors are probably seeing scary news that could be the first catalyst for the momentum to the downside, that is, the SEC and other regulatory authorities going after exchanges like Kraken and potentially Coinbase and many other names around offering stake as a service.
Stake allows people to earn returns or extra coins on Ethereum (ETH) and other proof of crypto assets. Merten says it’s important that regulators go after the service because it’s a big value proposition for crypto.
“This is a big feature for a lot of people, and it’s a big reason why a lot of people buy names like Ethereum, just like buying other names and different types of assets that can give you some kind of return.”
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