Cryptocurrency analyst Nicholas Merten has expressed a pessimistic view on Bitcoin (BTC) as its price hovers around $94,000. Merten, the owner of the DataDash channel, cautions that Bitcoin may face a significant decline in the next two weeks.
Concerns about Bitcoin and Potential Decrease
Merten has reported observing worrisome indicators 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 overcome, it is expected that Bitcoin could drop to approximately $80,000.
Altcoins Could Decline Alongside Bitcoin
A potential correction in Bitcoin is likely to have a negative impact on altcoins as well. Merten stated that a downturn in Bitcoin could result in a substantial loss of 25-30% in the value of altcoins. He emphasized that Bitcoin’s price movements, coupled with a downturn in altcoins, send alarming signals about the current market situation.
Currently, Bitcoin is being traded at around $93,824. If the resistance level at the 21-day EMA is not broken, Merten predicts a movement 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 uncertain climate, reviewing investment strategies has become increasingly important.