A widely followed crypto analyst is warning that Bitcoin (BTC) will remain in a bearish cycle for some time.
In a new strategy session, DataDash host Nicholas Merten tells his 512,000 YouTube subscribers that contracting market liquidity due to the Federal Reserve’s hawkishness will likely keep Bitcoin in a bearish trend despite bullish crypto narratives.
[adinserter block="1"]“And how is Bitcoin going to smash new all-time highs? I know some people say the ETF (exchange-traded fund) or they’ll say de-dollarization, BRICS, or they’ll say the Bitcoin bank run – all those narratives have fallen flat…
We’ve been one of the few channels who’ve been preaching that point, that we’re not ready yet. And it doesn’t mean that things are absolutely going to collapse here today. It’s not to say that the price for Bitcoin is going to [decline to $15,714]. That’s not what we mean.
When we say things are going to collapse, when we say things are going to start correcting and that we’ll have a continuation of bear market activity when it comes to price action, it means that we’re going to enter into a long, steady grind to the downside, where people’s expectations that were previously optimistic will get blown out.
And unfortunately, many people will get liquidated. They will lose that capital and a lot of that excess money in the system that is still causing inflation is going to be washed out and taken out of the hands of everyday people. We’re going to go through a difficult period of time. That’s just how it is guys. The Fed has a job to do.”
Merten believes that equities along with Bitcoin and altcoins are all headed for a market correction due to challenging macroeconomic conditions.
“We’ve got to spend some time to talk about the calm before the storm. I believe we’re on the cusp of a major move here, not only in Bitcoin and altcoins but the broader asset markets as a whole. A lot of macro uncertainty is finally coming up from beneath the surface… that could potentially cause a lot of pain in the economy.”
BTC is trading for $27,179 at time of writing, down 0.5% in the last 24 hours.
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