Cryptocurrency analyst Nicholas Merten says market conditions have reached a point where an unexpected bounce back that leads to Bitcoin liquidating bears is likely.
In a new market update, the DataDash host tells his 515,000 YouTube subscribers that just like in July of 2021, BTC could cause a bounce that caught most of them off guard.
He says bitcoin’s major moving averages are pointing to a relief rally around the $30,000 range.
“We collected all the way from $29,000 to $53,000 [in July 2021]. To put that into perspective, in just a few weeks, or simply less months, we’ve seen an 80% move in the price of Bitcoin. Am I calling for that exactly? No, what I’m asking is that we come and re-examine the scope of this former unification [$30,000].
There are no significant resistance points here, the moving averages are trending straight down to this point giving us a perfect setup for bitcoin to go up and retest this range here, see if it can react with these moving averages…
Not many people would believe that this could happen. You would be amazed at how relief marches can reach an exacerbated level, especially in the market they are in [are] Excessive amounts of derivatives.
While Merten anticipates a comfortable rally from BTC in the short term, the analyst remains cautious that the top crypto asset by market capitalization may not reach its absolute bottom yet.
According to the strategist, macro conditions are still weighing on the digital asset market.
“A lot of people think this is the low here on June 18th. And to be honest, I understand where a lot of them are coming from. Obviously we had a very dramatic sell-off here, a good recovery at that, plus we’ve already taken out a lot of leverage Finance and a lot of excessive credit that people used in order to borrow cryptocurrency for speculation…
I understand why people think this is the absolute bottom, but you can’t rule out the fact that the macro environment still applies. It is still suppressing long-term capital allocation to cryptocurrency if we go back to that range.”
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