Crypto analyst Nicholas Merten is warning that Bitcoin (BTC) could collapse below its 2022 low now that it has been stalling at the $29,000 level.
The host of DataDash tells his 511,000 YouTube subscribers that Bitcoin is running up against a key resistance level and is now very close to taking a sharp dive.
“Bitcoin has been generally stagnating here in this channel of resistance between $28,000 to $32,000. This was the same price range where we saw general support from buyers in the last cycle, which has now flipped as resistance since it broke in June of 2022. Along with that as well, as we saw price start to accumulate and we saw buyers come in here from this range between June to November this descending channel of potential support, which also takes into play some of the buying in June of 2021, we started a new short-term channel here – potentially long term channel as well, we’re going to keep open to that – where essentially we have higher lows and higher highs, and we’ve been trending upwards since around October and November since the collapse of FTX.
This has generally been where the bulls have been feeling some strength… Bitcoin is still continuing to maintain an optimistic trend. However, we are getting just a couple hundred dollars away from that trend flip on our indicator. Not to mention, we are getting very close to stepping out of that resistance channel, proving yet again that this is a supply zone, i.e. that it is resistance, not new support.”
Merten says that if Bitcoin’s trend reverses, the crypto king will dip to prices below its 2022 market low around the $16,000 level by the end of 2023 or in the first quarter (Q1) of next year.
“And if we do not hold on this ascending channel here and break out of this long-term resistance band and our momentum indicator flips red, we essentially are predicting that we’re going to revisit this long-term descending channel of accumulation, and that is likely going to mean that there is a chance sometime before the end of this year or in Q1 of 2024 that we’re going to get a third lower level for Bitcoin.”
Bitcoin is trading for $29,322 at time of writing, up 0.3% during the last 24 hours.