Why $60 Billion in Altcoin Value Faces Risk of Erasure, Explained by Nicholas Merten – Key Insights
A Highly Respected Crypto Analyst Raises Alarm Over a Potential $60 Billion Drain in Total Altcoin Market Capitalization.
In a recent strategy session, Nicholas Merten, renowned as the host of DataDash and with a substantial following of 512,000 YouTube subscribers, highlights a bearish trend in the altcoin market cap. Despite recent rebounds, the failure to establish higher highs suggests that the prevailing downtrend remains intact.
Merten points out, 'Altcoins have consistently formed lower highs, dating back to May, within this timeframe. It appears that we are poised to revert to the range around $150 billion in October.' This projection implies a potential reduction of approximately $60 billion in altcoin value, representing a further 25% correction beyond the existing market turbulence.
To support his argument, Merten points out that Ethereum (ETH), the leading smart contract platform, has struggled to breach the $2,000 threshold despite significant positive developments within its ecosystem.
"ETH/USD has experienced two previous unsuccessful attempts to break through the $2,000 mark, and now we're seeing a potential third failed breakout," he explains. He identifies this pattern as an ascending triangle and highlights the urgency of attracting buyers to prevent a downward breach. Merten emphasizes that this situation represents a year-long bullish pattern where bullish sentiment has not materialized as expected.
He notes, "This was a prime opportunity with all the optimism surrounding ETH 2 and Ethereum Improvement Proposal (EIP)-1559. People often fixate on the monetary policy aspects of crypto but overlook the larger question: Are there more eager buyers or sellers in the market?
At the time of writing, Ethereum is trading at $1,627, reflecting a 1.1% decrease in the past 24 hours.
Furthermore, the trader expresses an inclination towards shorting Bitcoin (BTC) in light of the current market conditions. Merten suggests that Bitcoin's price is on the verge of dipping below the 200-week exponential moving average (EMA), a potential bearish signal.
In his analysis, he remarks, 'It appears that we are on the cusp of a significant shift. For those of you wondering if I'm considering a short position, the answer is affirmative. I'm preparing to initiate a short position because the indicators have turned red. The moving averages are barely holding onto price movement at this point.
At the time of writing, Bitcoin is currently trading at $25,785, showing a 0.8% decrease in value over the past 24 hours.
Sep 02, 2023