Crypto strategist Nicholas Merten is giving his market assessment amid the sudden pullback in Bitcoin, Ethereum, and altcoins.
In a new DataDash episode, the crypto analyst says the broader crypto market has been due for a retracement after altcoin valuations skyrocketed this year.
“The DEXes have been probably the clearest indicator that we were due for a correction. We were due for a correction ever since January where we almost had, not exactly, but anywhere from around 7.5 to 10x on a lot of these major altcoin plays. It tends to happen when you get valuations too exceedingly high.”
Although the deep correction may have caught many traders off guard, Merten reminds his fellow traders that the crypto markets is renowned for its volatility.
“This is not the time to be panicking. This is the kind of price action we see and look for for discounts in the market… I just averaged into ETH the other day. So I’m going to be continuing to stack into crypto positions that I think are good here.
I don’t get caught in the FUD and I think especially for those who have been around, you know what I’m talking about. This happens all the time in crypto markets.”
Merten says Bitcoin looks solid from the long-term perspective even after the precipitous pullback.
“Chart doesn’t really look that bad. What it looks like to me so far is that we’ve been able to take this crazy downward trend that usually doesn’t happen, but again we don’t usually have these kind of crazy parabolic trends, where we, three times in the past, got rejected here at this price range ($10,000) after breaking into support. We have now turned it into support and we’ve got a chance to possibly set in a double bottom here to prove that this is new support.”
He also offers a number of fundamental reasons why it’s not yet time to push the panic button.
“Quite frankly guys, from what we’re seeing here with the actual inflows of capital from companies like MicroStrategy, in this case, Grayscale, there is a lot more institutional demand or corporate demand for Bitcoin in this case that’s actually going to probably keep it up as an asset, and that’s not going to allow market cap to go down. So long as there is not massive outflow of Bitcoin, there will likely not be massive outflows of the total crypto market.”