The DataDash YouTube channel has shared a cautious outlook for Bitcoin, suggesting that the leading cryptocurrency may experience a significant decline in the near future.
Nicholas Merten, the crypto expert behind the channel, has expressed concerns that Bitcoin’s current price activity, which is hovering around $94,000, indicates the potential for a sharp drop within the next two weeks. He has highlighted broader warning signs, such as weakening performance of alternative cryptocurrencies and troubling economic indicators, which he believes point to an impending downturn.
A key focus of his analysis is the 21-day exponential moving average (EMA). Merten has pointed out that this metric, which previously acted as a support level for Bitcoin, now appears to be acting as resistance. As a result, he predicts that Bitcoin could fall below the $80,000 threshold.
Merten has outlined his expectations for the levels at which Bitcoin might find support. He explains that the next critical levels to watch are the 100-day EMA, positioned near $85,000, and the 200-day EMA, which is closer to $76,000. If Bitcoin fails to hold at the higher level, he predicts a more severe drop to the lower EMA.
He also warned of the potential ripple effect this could have on alternative cryptocurrencies, describing the possibility of a 25% to 30% market-wide pullback. While Merten emphasized that such a correction would not spell disaster for the crypto market, he acknowledged that it could pose significant challenges, particularly for altcoin investors.