Analyst Nicholas Merten goes short Bitcoin (BTC) as “exuberance” spreads in crypto markets
A popular crypto analyst is shorting Bitcoin (BTC) after the crypto king has posted gains of around 100% since November.
In a new video update, DataDash host Nicholas Merten tells his 511,000 YouTube subscribers that he believes Bitcoin’s recent surge is a relief rally trap as “exuberance” spreads across crypto markets.
He says that bitcoin is likely to face resistance in the $29,000-$32,000 range and could start losing value soon.
“You want to wait for the setups to come your way. And boy do we finally have one now since we went back to the previous support pocket during the last cycle. This has a very high chance of serving as resistance, especially after a 100% bitcoin price move. This is the kind of relief rally stuff I miss out on.”
Source: Nikolaus Merten/YouTube
According to Merten, Bitcoin is unlikely to follow in the footsteps of its 2019 price action as some have suggested. About four years ago, Bitcoin experienced a 300 percent rally in just a few months.
“It’s likely that we won’t repeat the same hyperbolic rapid recovery that we had last cycle, at least we won’t be going to that extent, roughly a 300 percent move. From the bottom up, this was a massive increase in the price of bitcoin, a much larger move carried out over a longer period of time.
So far we’ve seen about 100% movement. So I really don’t like it when people make that comparison. What I think is much fairer when it comes to percentage terms and more relevant to what we are witnessing right now is the same recovery rally trap that has played consistently throughout this bear market.”
The crypto trader says Bitcoin is most likely following a similar pattern that began in June 2021 when it started a rally to a new all-time high and then collapsed.
“Note the pattern here that we may be repeating very well, a 139% move from the mid-cycle corrective lows that were here in June 2021. And in about 20 weeks, we saw bitcoin gain only 139% and fall back right at a time when everyone was convinced of the super cycle, the collapse of the dollar, and bitcoin as the super asset that will go towards $100,000. What happened afterwards? We have entered a brutal bear market, a multi-month downtrend.”
Source: Nikolaus Merten/YouTube
Bitcoin is trading at $30,470 at the time of writing, down nearly 1.50% over the past 24 hours.
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