Bitcoin Breaks $37,000, Why Downtrend To $29,000 Is Likely
21 Janeiro 2022 - 2:00PM
NEWSBTC
Bitcoin has now broken down past $38,000 for the first time in over
four months. This is a crucial point for the digital asset given
that it has successfully maintained its position above this level
throughout all of the crashes and dips of the previous month. While
most would like to think that this is only a temporary setback that
will soon be resolved, analyst Nicholas Merten has warned investors
to brace for even more volatility. Prepare For Further Downside In
a recent video on his YouTube channel, Merten shared with his over
87K subscribers some gloomy analysis surrounding bitcoin. The
analyst starts out by acknowledging what most have experienced in
the market, believing that the recent rebound was a telltale sign
of more upside to come. However, this could not have been more
wrong as the digital asset has suffered even more dips following
that. Related Reading | Bitcoin Implied Volatility Plummets To
Pre-Bull Market Levels: What This Means Merten pointed out the fact
that the gains realized from when bitcoin jumped from $41k to $44k
have quickly faded and that there is not a lot of significant
support ranges as the digital asset makes its way down with the
downtrend. He predicts some major volatility that will drag the
price down to levels not seen in about a year. Comparing the market
to that of May 2020, which would see the price fall to the $29,000
range. “It’s just likely at this point that we repeat what we saw
back in May to some degree,” he said. “Having a correction down to
this range [$29,000 to $30,000], getting people towards what I
would define as max pain It basically defines the point of peak
fear when everyone, even the bulls are convinced that we’re in a
bear market.” The analysts expect more downside to the tune of 20%
to 30%, which would put the price of bitcoin at the range he
predicts. BTC crumbles below $37k for first time in four months |
Source: BTCUSD on TradingView.com Still Bullish On Bitcoin The fact
that Merten relayed such a gloomy diagnosis for bitcoin in the
short term does not mean that the analyst is particularly bearish
in the long term. He explained that despite the market showing
bearish trends, he remains a bitcoin bull. “We’ve been bearish in
the short term over the past couple of weeks and we believe that
there is still more downside to go, [but] I’m still a long-term
bull.” Related Reading | I Only Hold 1 Bitcoin, Real Vision
CEO Raoul Pal Reveals Additionally, Merten reiterates the fact that
the market is still in a bull trend. Usually when prices start
declining as fast as they are now, panic spreads across the space
as most believe the bull market is over. For Mertern, this is not
the case. He explains that just as a downward correction is likely,
bitcoin could very well switch up and head towards the $150K to
$200K range. “I believe that we’re still in a bull market, not a
bear market. It’s very likely that we could see this correction,
but at the same time, it could be the catalyst to finally set
ourselves up on the next uptrend and charter towards the $150k
range, $200k range for Bitcoin.” At the time of writing, bitcoin’s
price is down 9.61% to be trading at $37,945. Featured image from
Medium, chart from TradingView.com
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