Two closely followed cryptocurrency analysts conveyed their expectations for the leading cryptocurrency Bitcoin. While Nicholas Merten believes we are at the beginning of the bear cycle, Pentoshi pointed to the “bull trap.” Here are the details…
Nicholas Merten: We are at the beginning of the bear cycle
Analyst Nicholas Merten says that Bitcoin (BTC) and altcoins are only at the beginning of a long bear cycle. The analyst pointed out that other markets are already starting to give signals of an unfavorable macro environment. He said that this will naturally put pressure on digital assets.
Commodities begin to rise again, the dollar index begins to rise, and on top of that, the bond market begins to be priced in with continued increases in the fed funds rate. Stock markets were living in a fairy tale. In reality, the markets are not ready to continue the bull market due to the inflation rate.
Lows will turn into resistance levels
While a short-term bounce is in sight for Bitcoin and perhaps Ethereum (ETH), Merten says the high prices we saw earlier this month will turn into resistance pushing BTC and ETH to lower lows and a longer bear market. The analyst uses the following statements:
Maybe we need to see if we can potentially break above $24,000 for Bitcoin and ETH in the short term. But I wouldn’t be surprised if we instead take these ranges as resistance and a rebound on the 4-hour timeframes. It’s something to keep in mind that we can get a short-term recovery, but I don’t think you’ll be back in this range. I don’t think it will get any better than the last few weeks, until much longer and many more corrections on the downside.
Pentoshi drew attention to the bull trap
Pentoshi warned that Bitcoin has touched nearly $20,000 support three times in about a month. According to the analyst, the bears are trying to convince the bulls that $20,000 is the bottom. In technical analysis, bouncing from a support level multiple times indicates a collapse is in sight as demand in that price area is exhausted.
Pentoshi also states that individual traders bought Bitcoin near the peak of the last BTC rally. But latecomers say it points to more downside risks as they prepare to cut their losses. While many traders claim they are “buying from the bottom”, most say it is “interesting” that BTC has changed hands at $24,000. The crypto strategist also highlights that Bitcoin is currently trading below the 200-week moving average, an indicator that marked the bottom of BTC during previous bear cycles.
As for Ethereum (ETH), the crypto analyst warns that the leading smart contract platform is at a crucial level of resistance. He suggests that the downtrend is very solid. He even uses the phrase “the story writes itself” for Ethereum.
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