Cryptocurrency expert Nicholas Merten, known for his insights on Bitcoin (BTC), has issued a warning about the current state of the market on his Youtube Channel. He points out that Bitcoin has been experiencing a period of stagnation, hovering around the $28,000 to $32,000 range.
Interestingly, this same price range previously acted as strong support during the last cycle. However, since it was breached in June 2022, it has now turned into a formidable resistance level. This is a significant shift, as buyers previously found comfort in this range, but now it’s posing challenges for the digital asset.
Is Trend Reversal, The Catalyst for BTC Decline?
Merten on a highly anticipated note warns that if Bitcoin’s trajectory reverses, it might plunge sharply. His analysis suggests that Bitcoin is a few hundred dollars from a trend flip on a key indicator. On the other hand, it is also reaching a crucial resistance threshold, which suggests that the current level will operate as a supply zone rather than a support area.
BTC Bottomout: What Are the Chances?
In light of the uncertainty surrounding Bitcoin’s future, the expert presents two possibilities. If the cryptocurrency can’t maintain its position in the upward trend and instead breaks out of the long-term resistance band, the momentum indicator will likely turn negative.
If this occurs, analyst says Bitcoin’s value is likely to fall back into its long-term accumulation channel. Market prices may drop to below $16,000, which is below the lows of the market in 2022. He expects this will happen by the Q4 of 2023 or the Q1 of 2024.