Bitcoin Breaks $37,000, Why Downtrend To $29,000 Is Likely

2022-1-22 20:00

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

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Bitcoin (BTC) на Currencies.ru

$ 95127.99 (+0.02%)
Объем 24H $43.031b
Изменеия 24h: -2.02 %, 7d: -9.23 %
Cегодня L: $94782.14 - H: $95637.28
Капитализация $1883.52b Rank 1
Цена в час новости $ 36573.4 (160.1%)

bitcoin maintained asset successfully given level dips

bitcoin maintained → Результатов: 126


Фото:

Where to buy OKB token as its price steadily rises following OKEx exchange growing popularity

OKB has been silently marching upwards since mid-March 2021; something that has caught the attention of most crypto investors because most cryptocurrencies have been on a roller coaster. It is almost a mystery how the OKB token has maintained a bullish trend even as the majority of coins including Bitcoin have been struggling to remain […] The post Where to buy OKB token as its price steadily rises following OKEx exchange growing popularity appeared first on Invezz.

2021-12-21 13:45


Фото:

JPMorgan’s Dimon Believes Bitcoin Can Hit $400k, But Still Thinks It “Worthless” — Why?

JPMorgan’s Jamie Dimon has maintained that he sees no value in the world’s largest cryptocurrency. Speaking on Monday during the annual membership virtual meeting at the Institute of International Finance conference, the American billionaire reiterated his earlier statements on Bitcoin, arguing that it was just a matter of time before the currency came crumbling to […]

2021-10-14 01:47


Фото:

Grayscale’s $1.5 Billion GBTC Unlock Nears – Why Analysts Are Predicting An Unfavorable Impact On Bitcoin Price

Bitcoin leads calmly this weekend tightly ranging between $33,000 and $34,500 ahead of this week’s unlocking of Grayscale Bitcoin Trust (GBTC) shares. The tight squeeze is closely linked to uncertainty by most investors who prefer not to take a side until the activity is concluded, a usual phenomenon with markets. Most Altcoins have also maintained […]

2021-7-13 18:47


Фото:

Cheap Power Is Creating a Bitcoin Mining Boom in Argentina

Argentina, the ailing South American country, is experiencing a cryptocurrency mining resurgence due to artificially low power rates maintained by subsidies from the national government. This fact, alongside exchange controls and the possibility of selling obtained assets at a higher exchange rate than the official one, is enticing more and more individuals to enter the […]

2021-6-2 11:00


Фото:

Ethereum’s Price Action Could Resemble a “Car Crash” if it Breaks Below $190

Ethereum has once again declined back down to its long-held consolidation channel around $200 The cryptocurrency is now showing some signs of weakness as it continues performing poorly alongside Bitcoin and most other major altcoins This weakness could soon lead it down to a key support level that must be maintained by buyers A failure for ETH to hold above this level could mean a “car crash” style decline is imminent, according to one analyst […]

2020-5-23 23:00