Crypto analyst Nicholas Merten is warning that Bitcoin (BTC) is inches away from a “breaking level” which might trigger a significant capitulation occasion.
In a brand new video replace, Merten tells his 511,000 YouTube subscribers that what has traditionally been a “buy-the-dip” assist degree for Bitcoin is now disintegrating.
“The truth that we’re effectively suspended and never even coming as much as retest these 200-days (transferring common), in addition to the 200-week [moving average], is a giant worrying signal right here.
And after we simply zoom out right here you can begin to see what I imply right here because the 200-week often was the ‘purchase the dip’ alternative for Bitcoin. It’s now performing as resistance alongside the cross of the 200-day beneath that 200-week. So that is already one huge situation right here.”
Merten foresees a state of affairs the place BTC briefly rallies to about $18,000 earlier than turning round and triggering a capitulatory occasion that takes the flagship crypto asset to new lows close to $13,000.
“With Bitcoin, I need to emphasize our breaking level right here, which is that if we actually break beneath the earlier lows and this line of sloping resistance, if we are able to’t maintain this descending line of earlier resistance, that’s going to be a significant warning signal.
Basically talking, if we see value even when it comes up right here in direction of the earlier resistance vary or earlier assist vary at round $18,000 and we zigzag beneath right here breaking beneath these earlier lows [of about $15,400] that’s your warning signal for main capitulation.”
At time of writing, Bitcoin is altering fingers at $16,804.
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