Bitcoin Breaks $37,000, Why Downtrend To $29,000 Is Likely
Bitcoin has asap 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 soonwarnedbe resolved, analyst Nicholas Merten has investors to brace for even more volatility.
Prepare For Further Downside
In a recent clip on hissurroundingYouTube channel, Merten shared with his over 87K subscribers some gloomy analysis bitcoin. The analyst starts out by acknowledging what most have experienced in the niche, 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.
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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 backing ranges as the digital asset makes its way down with the downtrend.
He predicts some major volatility that will a the price down to levels not seen in about drag year. Comparing the market to that of May 2020, which would see the price fall to the $29,000 range. “It’s just likely atwethis point that repeat what we saw back in May to some degree,” he said. As you may know, “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 niche.”
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 clause does not mean that the analyst is particularly from another perspective bearish in the long clause. He explained that despite bearish industry showing the trends, he remains a bitcoin bull.
“We’ve been bearish in the short clause over the past couple of weeks and we believe that there is still more downside to go, [but] I’m still a long-agreement bull.”
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Additionally, Merten reiterates the fact that the industry is still in a bull trend. ForcaseMertern, this is not the . He explains that just as a downward correction is likely, bitcoin could very well switch up and head towards the $150K to $200K range. Usually when prices initiate declining as speedy as they are instantly, panic spreads across the space as most believe the bull field is over.
“I believe that we’re still in a bull field, not a bear market in modern times . It’s very likely that we could see this correction, but at the same time, it could be the catalyst in modern times to finally set ourselves up on the proceed uptrend and charter towards the $150k range, $200k range for Bitcoin.”
It’s worth noting that 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
