Nicholas Merten told an audience of 511,000 subscribers that the latest push for the first cryptocurrency could be a trap as the crypto markets are overbought.
In his opinion, BTC will reach a resistance level in the area between $29,000 and $32,000, after which a fall may begin:
“You want to wait until you get some signals. And we got one now, entering the support zone formed during the previous cycle. There is a very high probability of setting a resistance level here, especially after a 100% rise in bitcoin. Now is the time I’m going to go short.”
Merten disagrees with those who believe that Bitcoin will follow the 2019 scenario. Four years ago, BTC showed a 300% increase in a few months:
“Most likely, we will not repeat such a hyperbolically fast recovery, which was in the previous cycle. At least not on this scale – 300%. From bottom to top, it was a serious rise in the price of bitcoin, a much larger move that lasted longer. At the moment we see 100% movement. I don’t like it when people make that comparison. I really think it’s much more important to talk about percentages. We are now seeing bull laxity that occurs during a bear market.”
According to the analyst, the scenario of June 2021 will most likely repeat itself, when BTC showed its historical maximum, and then collapsed.
Recall that over the past week, the BTC rate has added about 10% of the cost.
Source: Bits
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