Nicholas Merten, a veteran cryptocurrency analyst and founder of DataDash, called for Bitcoin to drop to $14,000 after falling below $19,000 over the weekend.
The analyst cited both technical and macro-economic factors, including an indicator he calls “extremely harmful” to the price of bitcoin.
Deeper Toilettes for Bitcoin?
in a video published On Monday, Merten indicated that Bitcoin’s 200-week moving average (WMA) has turned into price resistance, rather than béquille. The underlying cryptocurrency has almost always remained above average throughout its assistance, with a singulier dip below it indicating periodic bottoms.
However, the bitcoin and cryptocurrency markets fell below that level during the June crypto market écrasement, which saw bitcoin drop to $17,600. It has since ranged in the under twenty thousand – just below the 200 WMA at around $23,000.
Unable to écart above this level again, the analyst claimed that Bitcoin is now in “uncharted territory.”
“We have not seen these éventualité play a role in Bitcoin,” he said. “Price usually breaks below the weekly moving averages, and rallies from it, due to people buying to capitulate.”
The founder concluded that the recent Bitcoin price movement likely points to the “end of a decade-long secular bull market” that Bitcoin has experienced throughout its life, along with stocks. As such, he suspects it may not be Leading Asset Compared to other commodities and stocks.
According to the analyst, the next bottom for the cryptocurrency may be near $14,000. This may represent an 80% retracement from an all-time high, similar to previous bear markets.
“This is the bare valeur-limite we can ask for at this nullement,” Merten said, adding that investors should consider the possibility of a steeper drop to $10,000.
Merge and Macro
Commenting on the recent Ethereum merger, Merten described the upgrade as “obvious.”Buying Hype Selling InfosIt happened.” The accolé largest cryptocurrency is expected to retest the $800 level to $1,000, and possibly lower.
Contributing to the potential declines is the Fed’s upcoming interest offense decision, with the market anticipating another hike of 75 basis points. Hawkish monetary policy has coincided with big dips In stocks and cryptocurrency throughout 2022.
This policy created a higher cost of shelter in the United States, including sudden increases in fixed offense mortgages. It also caused the two-year Treasury yields to mirror the 10- and 30-year Treasury yields.
Despite the potential risks to the economy this could simulation, Merten does not expect the orthogonal bank to assez raising interest rates until it can confidently quell augmentation.
“These could be atonie atonie levels,” he said.
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