Bitcoin Facing Significant Pressure Despite Recent Surge
Nicholas Merten, a well-known cryptocurrency analyst, and trader with over 500,000 subscribers on YouTube has expressed his reservations about the recent rally of Bitcoin (BTC).
Despite the flagship cryptocurrency’s massive surge over the past week, Merten believes the macro environment is unfavorable for the flagship cryptocurrency.
In a recent video, Merten highlighted the Bitcoin-to-Nasdaq stock index correlation, which he said looks bullish. However, he also noted that there are reasons to be cautious. While BTC’s ability to climb above the 200-week and 200-day moving averages is a positive sign, Merten said that he needs to see it hold up in this range, as history has shown that the assets’s price tends to fade in this area.
Merten also raised concerns about the macroeconomic factors that could weigh on Bitcoin in the weeks ahead. He pointed out that the cryptocurrency is a risk-on asset that could be impacted by regulatory actions against its onramps and the banking infrastructure supporting it. Additionally, he questioned where the liquidity would come from if these factors came to fruition.
Despite acknowledging that retail investors, speculators, and long-term hodlers could drive Bitcoin’s price higher, Merten noted that the typical correction of a crypto bear market has not yet occurred. Thus, he remains cautious about the prospects for BTC in the current macroeconomic environment.
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Merten’s views are not unique. Other analysts have expressed similar concerns about the impact of regulatory actions and macroeconomic conditions on the cryptocurrency market. Nevertheless, many crypto investors and enthusiasts remain optimistic about the future of digital assets and the potential for decentralized finance to revolutionize traditional financial systems.
As with any emerging market, there are risks and uncertainties, but the potential rewards may be significant for those willing to navigate the landscape carefully.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
