A widely-followed crypto analyst says right now is not the time to be calling for a bear market, despite worrisome price action.
“Taking a look here at the ETH/BTC ratio, the absolute reversal we’ve seen here over the past few hours where we’ve been seeing the ratio picking up and almost getting back to the highs here, the highest level we’ve seen since January. This, especially with the volume kick-up we had here on Binance yesterday is absolutely fascinating and one which cannot be ignored.
That’s why I’m again not emphasizing absolute bearishness and FUD [fear, uncertainty, doubt]. I’m in fact saying, ‘Hey, you know, maybe we should get a little bit more optimistic. We should be greedy when other people are fearful.’ I think this is not the time to start calling for an absolute bear market. It certainly isn’t showing that when it comes to the ETH/BTC ratio.”
The analyst sees BTC’s current $30,000 range as strong support for the leading crypto asset by market cap. Merten says he thinks this is about as low as Bitcoin will go and that now is not the time to turn bearish.
“The last thing that I’m thinking about doing is breaking convictions and selling my positions at $30,000. Certainly, in this case, we’ve seen the worst-case scenario that we’ve talked about on the channel to come down to $30,000. Prices could possibly go lower. I got to be honest with you all, I don’t see it happening. I’ll stick to my guns on it. The reason why, and this is a great point of emphasizing two steps behind us.
I remember how many times we re-tested this range at $30,000 back here in May of 2021 when the macro sentiment was much more optimistic. I remember how many times people thought, ‘Oh my gosh, we are going to sell in this case, we’re going to break down below this range.’ But each and every time, buyers came in. They bought this range. Just like they did back here in January 2021. And just like we’re seeing right now with market prices here on May 10th.
Merten notes that it is important for investors not to abandon this range in price, as Bitcoin and the rest of the crypto market have already corrected upwards of 50% off their previous highs.
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