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

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 , 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.

Bitcoin price chart from TradingView.com

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

Note: This article have been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here

Related Posts
The last session on the WSE in 2021. The indices are going up thumbnail

The last session on the WSE in 2021. The indices are going up

2021-12-30 17:40publikacja2021-12-30 17:40fot. Michał Dyjuk / / FORUMOstatnia sesja giełdowego roku przyniosła zwyżki indeksów, pieczętując tym samym wzrostowy tydzień. Końcówka roku zostawia pozytywne wrażenie i nadzieję na to, że hossa nie powiedziała jeszcze ostatniego słowa. Handel w czwartek rozpoczął się od lekko pozytywnego otwarcia nieznaczenie powyżej wczorajszych zamknięć. Do południa warszawskie indeksy zeszły nieco niżej, chwilami…
Read More

Inconsequential cyclone ‘Shaheen’ forms off Gujarat coast

The seas off the West Gujarat coast have witnessed inconsequential cyclone ‘Shaheen’ that materialised on Friday morning from a remnant deep depression from erstwhile Bay of Bengal cyclone 'Gulab.' 'Shaheen' was located 400 km West-Northwest of Devbhoomi Dwarka (Gujarat); 260 km South-Southwest of Karachi (Pakistan); and 530 km East-Southeast of Chabahar Port (Iran).Severe cyclone likelyIndia…
Read More
Danaher & Walsh adds to board thumbnail

Danaher & Walsh adds to board

David LaveryDavid Lavery previously worked for Danaher & Walsh in site management roles before returning to his native Australia in 2010, where he worked for contractors Fulton Hogan and Brierty on a range of civil engineering projects. He returned to the UK in 2018 and worked for Tarmac for a year before re-joining Danaher &…
Read More
Index Of News
Total
0
Share