Crypto analyst and trader Nicholas Merten, with 511,000 Youtube subscribers, warns that Bitcoin price could return to 2022 lows. He also gave a date for the collapse in his latest statements.
Technical analyst says Bitcoin will drop below 2022 levels
In his current analysis, Merten mentioned that Bitcoin bulls are failing to break through critical resistances. The analyst says this weakness will now lead to a sharp dive. He reminded what happened in 2022 in a new Youtube broadcast yesterday:
Bitcoin usually pauses in this resistance channel between $28,000 and $32,000. This is the same price range where we saw general support from buyers in the last cycle and reversed as resistance since it broke in June 2022. However, as we saw prices begin to accumulate and we saw buyers coming. We have launched a new short-term channel from the June-November range and this potential descending channel of support, which includes some of the buys in June 2021 – potentially staying in the long-term channel. We have essentially been in an uptrend since October and November when we had higher lows and higher highs and since the collapse of FTX.
Later, Merten mentioned that the FTX crash was the bottom of the bear market. Drawing the ascending channel above, the analyst states that the bulls will have to struggle for a while:
This is where the bulls usually felt some strength… Bitcoin still maintains an optimistic trend. However, we only get a few hundred dollars from this trend reversal in our indicators. Not to mention, we are getting very close to exiting this resistance channel and we are proving once again that this is a supply zone, so this is a resistance, not a new support.
Here is that date
At a key point, Merten says that if Bitcoin’s trend reverses, it will drop below the 2022 market low of $16,000 by the end of 2023 or in the first quarter of next year:
If we do not hold the ascending channel here and break this long-term resistance band and our momentum indicator turns red, we actually anticipate that we will revisit this long-term descending accumulation channel. This will likely mean we will hit a third low for Bitcoin before the end of this year or in the first quarter of 2024.
Not everyone agrees: Santiment analysts are giving bullish signals
On the other hand, crypto analytics platform Santiment says one metric indicates a potential rally for Bitcoin. Santiment analysts say Bitcoin is dominating the discussion on social media platforms, following the 0.25% rate hike by the Federal Open Market Committee (FOMC) earlier this week.
According to the firm, Bitcoin’s social dominance indicates “fear”. This could potentially trigger an upward move in its price.
According to Santiment, the supply of Bitcoin on exchanges has dropped to a 55-month low. This in itself is another positive sign for the leading crypto. According to Santiment analysts, “Bitcoin supply on exchanges continues to self-protect. Dropping below $30,000 last week did not trigger any serious backlash that would indicate FUD or additional selling. 1.17 million BTC on exchanges is the lowest amount since November 2018.
We have included the short-term price predictions of other experts in this article of Kriptokoin.com.
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