A widely followed crypto analyst predicts that Bitcoin (BTC) will be hit hard by the selling pressure and make a significant downward move.
In a new strategy session, crypto trader Nicholas Merten, the host of DataDash, said tells its 511,000 YouTube subscribers the king is setting up crypto for a step down.
According to Merten, the top crypto asset by market cap will struggle to break its channel resistance between $30,000 and $33,000.
“The question here is whether or not we will be able to break this channel of resistance, which has been proven time and time again as resistance for Bitcoin. This is again why I’m trying to bring people back to the center – I’m not trying to be a permabear or bet against Bitcoin.
Therefore, we believe we have prepared ourselves very well as we enter channel resistance for a new third wave down that will likely hit harder than the previous resistance we faced at this range in the past because the more times we pass [to] this range, and we can’t get through it, that’s going to be a problem.
The analyst further says that BTC bulls have a case on their hands if Bitcoin can break through the resistance zone. However, Merten notes that the only way he envisions BTC accomplishing such a feat is if a BTC exchange-traded fund (ETF) is approved on the spot market.
“The bulls are arguing here if we can get above $33,000…
I think the question remains whether or not we will be able to rise above this channel of resistance and start using it [it] as support to move up in the case of a Bitcoin ETF. And I’ve got to be honest with you, as I look at the ratios here, the thing that’s going to make this happen is if we get an ETF.
I think this is the only chance, all the other stories – let’s just be honest about it [it] – the other stories have failed for Bitcoin in the short term. Just be realistic about it…
And now we come to the same channel with the same hopeful story as here in June. Hopefully BlackRock gets its ETF approved, along with many others.”
Bitcoin is trading at $30,141 at the time of writing, up 2.15% over the past 24 hours.
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Generated image: Midjourney