Crypto analyst Nicholas Merten believes the current Bitcoin and crypto market correction is not over yet.
On a new episode of DataDash, Merten tells his 480,000 YouTube subscribers that he expects the overall crypto market cap value to continue moving to the downside.
“Where do I think we’re heading? I think we’re generally going to head towards the $2.4 trillion range [in total crypto market cap].
A full, nice, clean, 20% correction in market valuation.”
Merten says that this correction period could act as the framework for crypto’s next “super wave” rally that takes the entire market significantly higher.
“We’re probably going to be zig-zagging around this range [roughly $2.59 trillion] and eventually setting up the framework for a breakout.
How long that’s going to take? I don’t know, specifically, and I don’t want to make any big, rampant calls on what’s going to happen here. I think this is the range here where you’d want to add in if you’re looking to average into the market and catch up some new positions before the next super wave within the crypto market.”
At time of writing, the current crypto market value cap sits at $2.65 trillion.
Moving on to the largest crypto asset by market cap, Merten addresses speculation that Bitcoin (BTC) may be enduring a bearish double top pattern near the $60,000 value range.
“I wouldn’t be too concerned about this, I don’t think it’s a double top.Â
We’ve clearly set in new all-time highs here and started to hover around this previous resistance range [$60,000], but we’re going to get a couple more retests of this.”
The analyst says that on the shorter-term time frames, Bitcoin’s price action may look uncertain – zooming out, however, the leading crypto is currently in the same price range that it was in October and earlier this month.
“The big thing I would ask that you do for your mental health, don’t get caught up looking at the five-minute chart like this, it’s going to make it look like everything is going to crap. In reality, Bitcoin has done phenomenally well. This is generally the range we were hanging out pretty much through all the way through October in early November, it’s not that bad.”
Bitcoin is trading at $60,619 at time of writing, down 5.5% over the last 24 hours.
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