Popular crypto trader Nicholas Merten thinks there is one crucial Bitcoin (BTC) chart that no one is talking about right now.
In a new video session, the analyst tells his 515,000 YouTube subscribers that the Bitcoin against the stock market indices chart is displaying a long-term bullish pattern.
Merten explains that conventional wisdom about Bitcoin being a risky asset would theoretically lead one to believe that BTC should sell off two or three times harder than equities in times when the U.S. Federal Reserve engages in quantitative tightening.
That, however, has not been the case, according to the crypto analyst. He points to the BTC/Nasdaq Composite (BTCUSD/IXIC) chart as evidence.
“Take a look at the chart here. Since back here in December of 2020, the ratio has continuously made healthy [higher lows] each and every time. To put this into perspective, from the previous low here back in November – December to the new low, there’s a 48% increase in the ratio. Bitcoin outpaced equities by 48%.”
Merten highlights that Bitcoin “might be a dark horse” asset in times of economic recession.
“Even as equities are in an absolute panic mode, Bitcoin’s price is holding up quite nicely. We are making higher lows here in price and slightly higher highs here over the short term since the start of the year. That is really interesting. That is something that cannot be ignored.”
The analyst says Bitcoin is building a “seismic wedge” against equities that could detach crypto from its correlation with stocks.
Bitcoin is trading at $40,544.95 at time of writing, up nearly 4% in the past 24 hours.
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