An analyst closely followed in the crypto world is predicting much lower prices for Bitcoin (BTC), despite the crypto king being a long way from its low of the year.
In a new strategic session, Nicholas Merten tells his 511,000 subscribers of DataDash that Bitcoin appears poised for a sustained downtrend in the coming months. He shares a chart predicting a rapid drop to around $12,000 for BTC by September:
Merten also says that while Bitcoin has historically been correlated with technology stocks, BTC is now starting to fall behind. According to the cryptanalyst, shares of technology companies such as Microsoft and Nvidia are rising while BTC remains in a price trough:
“Bitcoin has certainly made some good moves over the past few months. But the question you have to ask yourself is whether that will continue.
Even if you bought in November or are considering buying now, ask yourself if Bitcoin will still be the leading horse in the race. Because what we’ve seen in recent months is very similar to what we saw in the previous bull market. The same level of support that used to hold true now acts as resistance. We haven’t even come close to the upper level around $32,000 – $33,000, which is what many people mentioned as their exit target from the market.
It often happens that people set their expectations too high, keep moving the goalposts and end up not taking a profit and getting stuck.”
Nicholas Merten’s pessimistic view of Bitcoin has sparked a debate among crypto enthusiasts. While some traders may be concerned about a possible downtrend, it is important to emphasize that the crypto markets are highly volatile and subject to rapid swings.
Merten’s analysis suggests that Bitcoin’s price may see further pressure in the coming months, with a predicted drop to around $12,000 by September. He points to a potential turning point in Bitcoin’s momentum indicator on the weekly timescale as a major factor supporting his prediction.