A widely followed crypto analyst is predicting that Bitcoin (BTC) will be hit hard by selling pressure and make a significant leg downward.
In a new strategy session, crypto trader Nicholas Merten, the host of DataDash, tells his 511,000 YouTube subscribers that the king crypto is setting up for a move to the downside.
According to Merten, the top crypto asset by market cap will have trouble breaking through its channel resistance between $30,000 and $33,000.
“The question here is whether or not we’re going to be able to clear through this channel of resistance, which each and every time has proven as resistance for Bitcoin. This is again why I try to bring people back to the center – I’m not trying to be a permabear or bet against Bitcoin.
It’s why we do believe that we are very well setting up as we enter in to the channel resistance for another third wave to the downside that will probably hit harder than any of the prior resistance that we faced in the past at this range because the more times we come up [to] this range, and we can’t clear through it, that’s going to be a problem.”
The analyst goes on to say that BTC bulls have a case to be made if Bitcoin can bust through the resistance zone. However, Merten notes that the only way he envisions BTC completing such a feat is if a spot market BTC exchange-traded fund (ETF) is approved.
“The bulls have an argument here if we can get above $33,000…
I think the question remains whether or not we’re going to be able to get above this channel of resistance and start to utilize [it] as support to propel higher in the case of a Bitcoin ETF. And I got to be honest with you guys – as I’m looking across the ratios here, the thing that’s going to be making this happen is if we do get an ETF.
I think that’s the only shot, all the other narratives – let’s just be candid about [it] – the other narratives have failed for Bitcoin in the near term. Just being realistic about it…
And now we’re coming to the same channel with the same hopeful narrative as we did back here in June. Hopefully, BlackRock is going to get its ETF approved alongside many others.”
Bitcoin is trading for $30,141 at time of writing, a 2.15% increase during the last 24 hours.
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