One of YouTube’s most popular crypto analyst says he expects Bitcoin to shift lower in the short term.
According to Nicholas Merten (aka DataDash), Bitcoin’s sluggish volume doesn’t bode well.
In addition, Merten says BTC failed to meet a resistance level around $11,000 early this month, which Merten believes is another sign that BTC could break to the downside.
“Volume has been abysmal. It’s commonly what’s expected until you really get a breakout or breakdown…
We didn’t even come to make contact with the line of resistance we’ve met three times in the past. It just seems at the moment we’re not seeing the momentum to really bring confidence into this market, for me to feel that we’re ready to break out just yet. It feels like price needs to come down toward a lower range in the 30 to 40% correction range that we commonly see. Even though we’ve already seen that at these previous lows [at $9,400].”
Merten says he’s thinks BTC could drop another $700 or more, and could sink to as low as $8,000 this month.
“We still haven’t made contact with the 21-week moving average. So perhaps it could be a correction down to test one final time here on that line. It would be about a $700 as we roll back here toward the lower end of the wedge.
So no matter what you think is going to happen, whether you think it’s going to be more severe, I do think we’re going to see some more downside here over the next few days. Somewhere around 8-10% minimal. And then possibly down towards around 20% if we push down to $8k. It just seems at the moment we’re not really seeing the momentum to really bring confidence into this market for me to feel that we’re ready to break out just yet.”
Fellow analyst Josh Rager is on the same page.
In a new series of tweets, Rager also identifies $8,000 as an area of strong support.