Bitcoin (BTC): Is the Recent Price Surge a Sign of a New Bull Market Trend?
Nicholas Merten, a well-known crypto analyst, cautions that the recent 56% rise in the value of Bitcoin (BTC) does not necessarily signal the start of a new bullish market trend.
In his latest video update to his 511,000 YouTube followers, Merten, the host of DataDash, explains that after BTC‘s rise from its low point, the leading cryptocurrency is likely to experience a reversal in its price trend.
According to Merten, there have been signs of stagnation in momentum since late January, with institutions taking advantage of the upward market flow and buying pressure from retail investors and other market speculators.
He also mentions that the leading indicator they use for trend reversals has shown a likely downward move after a 5% drop seen yesterday. Merten states that the majority of the potential relief rally has already occurred, and there are clear signs that this is not the beginning of another bull market.
Furthermore, Merten states that there are clear indications that the bear market has not yet ended, including the recent crackdown on staking by US regulators.
READ MORE: Bitcoin and Ethereum: What Should We Expect After the Correction?
Merten believes that the SEC’s actions against exchanges such as Kraken and possibly Coinbase for offering staking as a service could be the initial catalyst for a momentum drop.
He notes that staking is crucial for many crypto investors, as it allows them to earn yields or additional coins on Ethereum (ETH) and other proof-of-stake crypto assets. Merten argues that it is important to pay attention to regulators going after staking as it is a significant value proposition for the crypto industry.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
