Here’s why, according to analyst Nicholas Merten, “more pain in the street” is necessary for crypto markets
A popular crypto analyst says predictions of a euphoric surge in Bitcoin (BTC) or an epic crash, both are unlikely and that BTC may have to experience some pain before it can hit new all-time highs.
In a new strategy session, Nicholas Merten tells his 489,000 YouTube subscribers that he anticipates Bitcoin to reach a valuation of $ 200,000 by the end of next year, but not before further testing the performance of crypto investors.
“What we’re likely to get is a rally to $ 200,000 by the end of 2022, but before we get there, there’s a very good chance that we will [recent rally] is nothing more than a dead hop and we have to see more pain in the streets.
We need to see more pain in the crypto markets before we move higher. “
The DataDash host takes a look at the monthly chart to back up its claim that Bitcoin’s recent bullish move was more of a “dead cat bounce” than evidence that a major rally had begun.
“If you look at different exchanges, different volume data, the volume and pullback we see here is on par with what we saw on the long side.
In the daily newspaper, the vast majority of this supposed price rally or the big eruption has now receded, and only within a few hours. “
Source: Nicholas Merten (DataDash) / YouTube
Merten says he’s not pessimistic about the crypto markets. He cites a key metric from previous bull runs that suggests how and why Bitcoin will rise over the next year.
“I think we are just seeing something that has happened before in the history of Bitcoin during this bull market. It is one of the determining factors in how this market works, which uses massive leverage to propel each and every wave of the cycle forward.
If you look at many metrics in the chain, if you look at the number of new Wallet-View addresses in the chain when looking at the number of wallet addresses that contain a certain amount of Bitcoin.
Most of these key market metrics do not indicate a major new wave of users entering the crypto space.
What really drove these increases in value is the leverage platforms.
Crypto lending and lending platforms where you can basically borrow stablecoins or dollars from your crypto assets …
And that was a big reason why every time we revisit those general previous highs after a long period of consolidation, we get these big breakouts. “
Bitcoin has had a rocky month, falling from over $ 57,000 to under $ 47,000 between December 3rd and 4th. The leading crypto asset has regained $ 50,000 several times since then, but has failed to hold that key level.
At the time of writing, BTC is down 2.9% over the day to $ 46,743.
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Source: Crypto News Deutsch