Brace for Impact: Crypto Analyst Predicts Bitcoin and Altcoins Implosion
Nicholas Merten, the host of DataDash, suggests that the focus of the Bitcoin bulls on the Federal Reserve's ability to save the day and kick off a new bull market is misplaced.
He believes that the Fed is not able to stimulate the kind of risk-on behavior typical of a bull market, especially in alternative assets such as altcoins.
Merten believes that the current relief rally will likely fade over the next few weeks and months, indicating that the markets are not ready to sustain a long-term uptrend.
Merten is also skeptical about the narrative that artificial intelligence (AI) is the next big thing, pointing out that while AI has made progress, it is not expected to turn a profit anytime soon. He warns investors to be wary of such narratives and instead suggests hedging their wealth with fractional exposure, which can help protect their core wealth in case the entire system collapses.
The analyst notes that the US stock market is approaching a key resistance level, which suggests a major correction may still be on the table. He believes that since January 2022, the red resistance band has accurately gauged when to start getting ready to go short.
Merten warns that investors should be cautious and ready to take defensive positions if the stock market does experience a correction.
Despite Merten’s warnings, Bitcoin is trading for $29,150 at the time of writing, experiencing a 3.5% gain in the past day.
However, his insights and analysis are highly regarded in the cryptocurrency community, and many investors will likely take note of his cautionary advice.