A widely followed crypto analyst is predicting a massive correction in tech stocks that would drive the value of Bitcoin (BTC) to new bear market lows.
In a new video update, popular crypto analyst Nicholas Merten tells his 514,000 YouTube subscribers that he believes technology indices like the Nasdaq are due for a 50% devaluation from the highs.
“Our general target is that at a minimum, just from where we’re at right now, we should at a minimum expect technology indices like the NASDAQ are going to be probably correcting 50%.
We are well overdue for a proper recessionary bear market, depressionary bear market, where instead of the kind of 15% to 30% dips that we’ve gotten many times over the last decade that soon after recover very swiftly, we should be expecting a harsh correction that is going to take us down 40%, 50% or 60%.
I don’t want to call the exact date nor the exact value that we’re going to go to because no one really knows that but I want to give ourselves a goal post that, potentially, over the coming months going into Q1 of 2023, we could see the Nasdaq come down another 28% that would essentially take us from [its] all-time highs down to a clean 50 to 50.5%.”
Merten says that such a decline for the Nasdaq is bad news for Bitcoin, and gives a rough price target for the leading digital asset.
“If we think about the fact that Bitcoin would be holding neutral to the Nasdaq, we take it here to our Bitcoin chart and look at an equalized amount of decline in Bitcoin’s price from where we’re at now and that would take us roughly down towards the $13,600 to $14,000 [area].”
Bitcoin is changing hands for $19,134 at time of writing, a 1.7% gain on the day. A decrease to Merten’s price range would mark a dip of around 28% for BTC.
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