A widely followed crypto analyst says that Bitcoin (BTC) is giving reason for its bulls to start getting concerned.
In a new DataDash update, Nicholas Merten tells his 512,000 YouTube subscribers that things are “getting scary” for BTC bulls as its weekly price action starts to look exhausted at resistance.
“As we zoom out toward those longer-term time frames which are more important, this is where things get really scary for the bulls and play into our long-term thesis that we are still in a bear market and that this is an exacerbated relief rally of around 100% from those relative lows…”
Merten has maintained a stance that both BTC and Ethereum still need to make new bear market lows, partially because of unfavorable macro conditions. He shares a chart showing suggesting BTC can make another low at a descending support line near $12,000 in the coming months.
Merten also says that the major legacy markets, which often correlate with crypto, are hinting at downside action. Looking at the NASDAQ, the analyst says he plans on fading its strength, and instead placing short positions near $13,750 where price was rejected in August.
“So as we’re approaching $13,750, that’s the key level here on the [NASDAQ]. That’s where I’m going to be looking to potentially build in a short position.
This is already in a range where I would say I’d feel comfortable building that short position. A lot of the tech plays are feeling overbought, overheated, and especially as we pass this prior short-term resistance range around March.
It’s exactly what happened back here in August. We saw some chopping around $13,300, we went down a little bit in a shorter time frame, we came up rallied towards a slightly higher level, and we hit resistance at this previous range of support around $13,750. It served as resistance. So that’s the name of the game here guys, getting ready for those levels, starting to build positions and making that bet to the downside.”
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Featured Image: Shutterstock/Wit Olszewski
