Cryptocurrency analyst Nicholas Merten has expressed a pessimistic view on the future of Bitcoin (BTC) as its price hovers around $94,000. Merten, the owner of the DataDash channel, has warned that Bitcoin may experience a significant decline within the next two weeks.
Merten has observed concerning signals in Bitcoin’s price movements and altcoins. He has also noted that macroeconomic data indicates an unfavorable trend.
According to Merten, the 21-day exponential moving average (EMA), which previously acted as a support level, now serves as a significant resistance point for Bitcoin. If this resistance level is not surpassed, it is anticipated that Bitcoin could decline to around $80,000.
The potential correction in Bitcoin is also likely to have a negative impact on altcoins. Merten has stated that a downturn in Bitcoin could result in a substantial loss of 25-30% in altcoin values. He has emphasized that Bitcoin’s price movements, along with a decline in altcoins, send alarming signals about the current market situation.
Currently, Bitcoin is trading at approximately $93,824. If the resistance level at the 21-day EMA is not broken, Merten predicts a move towards the 100-day EMA at $85,000. A breach of this level could cause Bitcoin to drop as low as $76,000.
Given the prevailing market anxiety in the cryptocurrency sector, traders are advised to proceed with caution. In this climate of uncertainty, it has become increasingly important to review investment strategies.
