As the markets drop across the board, YouTube’s biggest crypto analyst says a short-term Bitcoin dip to $4,200 may be in the cards.
According to Nicholas Merten (aka DataDash), a key metric points to a heavy case of crypto whale FOMO in the month of April. Merten says a strong fear of missing out has led big Bitcoin buyers to purchase BTC on traditional crypto exchanges, in addition to over-the-counter (OTC). He points to the rising number of Bitcoin transactions as evidence of the big buys, with the number of BTC transactions now at its highest level since the last bull run.
“You’re not only getting a little bit of FOMO and a little bit of trading, after what was such an amazing leap of volume and price action. But ever since we really had this buy candle come in [on April 2nd] and the price action actually held these levels, I think it proves substantially that we’re actually starting to get some people buying around this range who are much larger-scale investors. Predominantly those who would be buying OTC.
The reason you have these people coming in at these levels buying up huge amounts on spot market rather than OTC is that there’s just too much buy demand for what’s being offered on the sell side. And the way that that plays a role in order to price is look, if I can’t get my $50,000 Bitcoin buy order [because] there’s just not enough whales on the sell side, you get to the point where you almost do this kind of sense of FOMO. It might as well be good if I just go ahead and buy this on an exchange and start buying up Bitcoin on spot, where I know there’s liquidity so that I can buy. Sure, I’m going to pay a little bit of a premium on some of it, but I might as well get in first before somebody else does.”
In the short term, Merten says he expects the price of BTC to climb towards the $6,000 mark before dropping back down to around $4,200. If and when that happens, Merten believes it will be the last chance to buy BTC at lows, with a long-term Bitcoin bull run on the horizon.
Right now, the crypto markets are a sea of red, as shown by the crypto data tracker Coin360.
Bitcoin is down 2.63% at $5,414. Ethereum is down 6.41% at $162.62, and XRP is down 8.14% at $0.2996.
Meanwhile, technical analysts are tracking the market dip and checking resistance levels for the top crypto assets.
Blockonomi – Ether rebound could face strong resistance
CryptoPotato – Bearish ETH facing 2019 low against Bitcoin
Ethereum World News – XRP primed for more losses versus Bitcoin
Blockonomi – Sellers remain in control below $0.3300