Another Bitcoin Crash (BTC down price) is coming, Says Popular Crypto Analyst
Widely followed crypto analyst Nicholas Merten says there is another major sell-off happening for Bitcoin (BTC).
In a new video update, the DataDash host tells his 515,000 YouTube subscribers that he sees the crypto king having another meltdown before it finds strong support in the range. $12,000 to $14,000.
“Do we have another sell-off coming? … Will we get one more final drop and build a base on a more solid foundation channel around $12,000 to $14,000 for Bitcoin? Is it crazy to think that could happen?
Merten refers to the net unrealized profit and loss (NUPL) index, an on-chain indicator that essentially indicates whether Bitcoin holders are in a profitable position or hole. When NUPL is above zero, more investors gain than lose. Below zero, more investors are losing money than making profits.
He says that Bitcoin's NUPL hasn't been in the negative territory long enough to assume the downtrend is safely over.
“During the period when we were at the top of the bull market, the NUPL pattern was reading somewhere around 0.7 to 0.75, periods were really overbought and we started to move into the negative zone, where the price is below the average price of most Bitcoins where on the chain.
Now you can see when we enter this blue range, which we did for a short period in June, we tend to hang in this range some time in typical bear markets. ”
The analyst who follows closely says BTC may be entering uncharted territory as it has never been traded during a tightening period currency and increase interest rates. He also said that he doubts that the Federal Reserve will return to quantitative easing anytime soon as before.
“I want to emphasize one big thing. In all 10 years, 12 years in general, Bitcoin has been liquid trading on exchanges, we have never had a full 50% recession or near-recession correction or the market down prices in the stock market. We had your typical 20% bear markets where everything started selling from 20% to 30%, where everything sold off [and] the Fed came to the rescue, saving the day.
[However] the Fed can no longer do what it did before, unless it cools down inflation… If the Federal Reserve has to print more for whatever reason and try to save time, they will aggravate the problem. The Fed can't do that in a world of supply chain [problems], talent shortages in the economy, low workforce participation, and all the concerns surrounding it. commodity prices ".
Bitcoin is changing hands at $19,856 at press time, a small gain on the day.
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