The founder of the DataDash cryptocurrency project believes that sideways price movement and correction are harbingers of the imminent arrival of institutional investors.
Nicholas Merten, on his YouTube channel, stated that conditions may soon form that will help Bitcoin break out of a stagnant trend. Mereten is confident that the current lull is nothing new and is a normal part of the Bitcoin market cap price cycle:
“The way bitcoin and the market in general are behaving now, I have seen too many times to count. Long-term investors have crowded out short-term investors, i.e. those who trade and speculate for fear of hoarding bitcoins.”
An experienced trader believes that an increase in the activity of the so-called “whales” will serve as a signal for the market to come out of hibernation. According to him, large bitcoin holders, starting to buy large amounts of cryptocurrency, launch the market during a lull that usually follows a significant price drop.
“Silence and sideways price movement is what follows after major price corrections of more than 50%. You have silence and consolidation for a while. And then step number three: in the middle of the silence out of nowhere, someone will come in and buy big,” explains Merten.
The head of DataDash believes that from a macroeconomic point of view, further selling pressure associated with geopolitical tensions will not affect the stability of bitcoin:
“If there is any opportunity for bitcoin to enter a bear market, now is the time. A time when there is a global geopolitical conflict, when there are huge inflationary fears. According to all these macro factors, Bitcoin should move down. But that’s not the case.”
Studying the HODL waves of bitcoin, Merten came to the conclusion that this indicator has not changed for more than a year. The specialist notes that the volume of stored bitcoins was 63-64%, which is the highest figure since August 2020 and January 2016:
“Want to know what happened every time we went above that 60 percent band? Whether there was a bear market capitulation or a correction in the middle of a cycle, a rally was underway.”
At the same time, well-known cryptocurrency analyst and trader Michael van de Poppe believes that against the backdrop of geopolitical tensions in Eastern Europe, Bitcoin and Ethereum will drop in price to record lows. Popular cryptocurrency analyst Benjamin Cowen agrees with his forecast. He expects even more depreciation of bitcoin as fear and uncertainty take over the markets.
Source: Bits
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