Closely followed analyst Nicholas Merten says that Bitcoin (BTC) and crypto markets are only at the beginning of an extended bear cycle.
In a new strategy session, the host of DataDash tells his 515,000 YouTube subscribers that other markets are already starting to signal that an unfavorable macro environment is unfolding, which will inherently weigh down on digital assets.
“Commodities are starting to tick back higher, the dollar index starting to turn higher, and on top of that, the bond market is starting to price in continued increases in the federal funds rate. Equities markets were living in a fairy tale and in reality, markets are not ready to sustain a bull market because of the rate of inflation.”
While a short term bounce may appear for Bitcoin and perhaps Ethereum (ETH), Merten says that the higher prices we saw earlier this month will turn into resistance that push BTC and ETH back down to lower levels and into a more lengthy bear market.
“I wouldn’t be surprised if maybe in the short term we get a rebound here in the 4-hour timeframes for Bitcoin and Ethereum to potentially see if we can get back above [$24,000] and instead start to use those ranges as resistance.
That is something to bear in mind that we could get a short-term rebound here from this range but I do not think you’re coming back up in this range guys. I don’t think it’s going to get any better than it was back over the last few weeks until a much longer period of time, and much more corrections to the downside.”
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