Another Big Sale For Bitcoin (BTC) Coming, Famous Crypto Analyst Says – That’s His Goal
Widely followed cryptocurrency analyst Nicholas Merten says there is another big sell-off on the horizon for Bitcoin (BTC).
In a new video update, the DataDash host tells his 515,000 YouTube subscribers that he sees Crypto King suffer another crash before it finds strong support in the $12,000-$14,000 range.
“Do we have another sell-off coming?…Are we going to get another final price drop and probably build a base on a more solid foundation channel around $12,000 to $14,000 per bitcoin? Is it crazy to think that this is going to happen?”
Merten mentions the Net Profit and Loss (NUPL) scale, which is an on-chain indicator that basically shows whether Bitcoin holders are in profit or loss. When NUPL is above zero, there are more investors in profits than losses. Below zero, investors incur more losses than take profits.
He says that Bitcoin’s NUPL did not stay in negative territory long enough to safely assume that the downtrend is over.
“During the periods when we are at the highest levels of a bull market, the NUPL pattern reads somewhere around 0.7 to 0.75, really overbought periods, and we start to rent into negative territory where the price is below the average price of most bitcoin where it has moved over Series.
Now you can see when we get into that blue range, which we did for a short period of time in June, we tend to stay in that range for a while during typical bear markets.”
The closely watched analyst says BTC may enter uncharted territory because it has never traded during a period of monetary tightening and interest rate hikes. He also says he doubts the Fed will end up returning to quantitative easing anytime soon as it has in the past.
“I want to stress one big thing. In all of the 10 years, and generally 12 years, Bitcoin has been trading liquid on exchanges, we’ve never had a full-fledged 50% recession, a near-depression correction, or a bear market in stocks. We have a typical 20% bear market. , where things start to sell from 20% to 30%, as things are sold [and] The Federal Reserve comes to the rescue, and saves the situation.
[However] The Fed can no longer do what it did before, not unless it calms inflation… If the Fed prints more for whatever reason and tries to salvage the situation, it will exacerbate the problem exponentially. The Fed can’t do that in a world of supply chain [issues]talent shortages in the economy, low labor force participation and all concerns about commodity prices.”
Bitcoin is trading at $19,856 at the time of writing, a partial gain on the day.
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