Popular crypto strategist Nicholas Merten is keeping a close watch on Bitcoin, Ethereum, XRP, and Litecoin.
In a new edition of DataDash, Merten maps out to his 363,000 subscribers the levels to watch for BTC.
“We are in uncharted territory. This is a first for where Bitcoin is in its price history. So, we can see here right now that we’re holding generally around [$22,250]. You can see we dipped a little bit lower here but right now we’re roughly holding the support range we’ve had back here through December 17th to the 18th and it will be a question here whether we can maintain this level.
If we do start to curve back over here [$21,900], I would feel a bit of a warning sign’s coming out of the market; that we are going to dip down and do something that a lot of people don’t want to see and that’s a breakdown towards $20,000 or to the upper $19,000 range where the official all-time highs were previously from the last cycle to make it new support.”
Merten says that Bitcoin is already overextended and that we might see a shift in liquidity as investors rotate their profits into leading altcoins.
“Are we going to see altcoins start to see yet again altcoins start to take some of that market valuation, some of that liquidity, some of the market dominance? I really think that’s the case.”
The crypto strategist is looking at Ethereum (ETH/USD) and highlights that it is far from its all-time high.
“When I look at Ethereum, it’s in a much more healthy cycle. There’s not some absolute major overshoot. It’s not in its all-time highs.”
Merten also tracks the performance of Litecoin (LTC/USD) and notes. that the coin is maintaining its steady uptrend.
“Litecoin, holding up very healthily here. Nothing too crazy.”
Although the broader crypto market is currently going through a correction, Merten says that an altcoin season is in sight.
“What we saw back in the summer was not the altcoin cycle. We have yet to hit that altcoin cycle but we’re getting very, very close. We’ve had our precursor rallies in a lot of these altcoins and I can tell you all, you want to keep an eye on those major altcoins because some of them are starting to hold nicely.”
Merten emphasizes that LTC/BTC is trading near critical support at around 0.004 where it pumped 3x to 5x based on its historical price action. He’s also keeping a close watch on ETH/BTC which he says is also trading at a key support level.
“In this case, what we’ve got are discount opportunities where altcoins are really cheap right now. This is again where you see capital cycle in and out of different markets within the crypto space.”
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Featured Image: Shutterstock/Tithi Luadthong
