Cryptocurrency Analyst issues a warning and a target bearish for Bitcoin as BTC abandons the $20,000 level.

Popular crypto analyst Nicholas Merten claims that the price of Bitcoin (BTC) is likely preparing for another crash towards the thresholds of a new bear market.

Merten warns his 516,000 subscribers that the current bear market has not continued throughout previous cycles, and that the price of BTC has not fallen that far.

He claims that while bitcoin’s bear markets tend to calm over time, BTC is not yet mature enough to continue with a 74% retracement.

“Although time progresses with each bear market, we see fewer and fewer bear markets, I want to point out here that we probably will not go lower from an 84% retracement, which we saw in the last bear market in 2018, all the way to a retracement of 84%. 74% for just seven months.”

Merten says the argument can be made that the bull market ended in April 2021, which in theory would put the end of the bear market a little closer in the future. However, the analyst says he is taking the position that the bear market started in November, when BTC and the stock market reached their highest levels.

Merten anticipates another phase of the bitcoin bear market that puts BTC near the $13,000 level.

“If people are saying the drop we set in June was the lowest here, we’re talking about a 74% correction in price, and just above that is seven months of decline. Some people would argue that the peak is here, 14 months ago. And while I would say that There is a valid argument for this, altcoin valuations have been very strong in this minor rally and we have hit a new all-time high at around $3 trillion in market capitalization.

So I think the November highs make sense, because that’s not just where cryptocurrency topped, but stocks as well. So, at least, if you’re in that camp, and if you’re betting on a best-case scenario, you should at least expect an 80% drop. Now, what’s interesting here is that it takes us a lot less, about $13,000. »

& nbsp

Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investment in bitcoin, cryptocurrency, or digital assets. Please be aware that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

Leave a Comment