Closely followed crypto analyst Nicholas Merten says market conditions have reached a point where an unexpected bounce of relief that liquidates Bitcoin bears becomes more likely.
In a recent market update, the DataDash host told 515,000 YouTube subscribers that, just like in July 2021, BTC could make a jump that caught most months off guard.
He says Bitcoin’s main moving averages point to a relief rally towards the roughly $30,000 range.
“We rose from $29,000 to $53,000” [in July 2021]. To put that in perspective, we’ve seen an 80% move in Bitcoin price in just a few weeks, or simply less than months. Is this exactly what I’m looking for? Well, what I’m looking for is for us to come and retest this previous consolidative range. [$30,000].
There is no major resistance point here and the moving averages are heading towards this point where Bitcoin comes in and retests this range here and gives us a perfect setup to see if it can interact with these moving averages…
Many people do not think that this can happen. You’d be surprised how charity rallies can get even worse, especially in a market like this. [are] excessive amounts of derivatives.”
While Merten expects a relief rally from BTC in the short term, the analyst is wary of the possibility that the best crypto asset by market cap has yet to reach the absolute bottom.
According to the strategist, macro conditions are still putting pressure on the digital asset market.
“A lot of people think this is the absolute bottom on June 18. And to be honest, I understand where a lot of it is coming from. We clearly had a very dramatic sell-off here and a nice rebound on that, plus a lot of people using cryptocurrencies to borrow to speculate. We really cleaned up excess leverage and excess credit…
I understand why people might think this is the absolute bottom, but you can’t ignore the fact that the macro environment is still in effect. Returning to this range, it will continue to suppress long-term capital allocation for cryptocurrencies.”
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