Bitcoin is at a crucial juncture that could take the price of BTC up to $6,000 or back down to $4,200, according to crypto analyst Nicholas Merten.
The host of the popular YouTube channel DataDash had anticipated Bitcoin would push toward $6,000 in the next month or two.
But now, Merten says the recent Bitfinex and Tether controversy, more Bitcoin drama in India and a new warning from Moody’s about private blockchains could have a short-term impact on the market, bringing BTC back down to the low $4,200 range.
To read the tea leaves on where BTC may be heading, Merten is watching the McGinley Dynamic, a technical indicator designed to show the moving average of an asset while accounting for shifts in market speed.
“If the four-hour candle for Bitcoin can’t get above the McGinley Dynamic and have a nice green breakout above it, in that case then I am going to be quite bearish.”
“As a good trader, you should always expect that it can move both ways, and have trading strategies for when things are moving in what I call the twilight zone. That’s basically when things are moving sideways. There is no trend here. We’re in the same exact price range we came down into on April 25th, when the Bitfinex and Tether news came out.”
Technical analysts at large are looking gloomy on altcoins, with CoinDesk analyst Omkar Godbole saying BTC will remain bullish in the long term if the price holds above $4,235 – a former line of resistance that turned into support.
Bitcoin is currently down 1.07% at $5,243.35. Ethereum is down 1.66% at $155.43 and XRP is down 1.29% at $.029.
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