Popular crypto analyst Nicholas Merten says that Bitcoin is flashing signs of an upcoming rally and that BTC bulls are set to overtake bears.
In a new strategy session, the host of DataDash tells his 509,000 subscribers that Bitcoin is not in a bear market and that we shouldn’t be fooled by the top crypto by market cap’s recent stagnant price action.
“There’s a really interesting technical pattern going on and this is a signal that the bulls are in the lead. Don’t let the sideways consolidation we’ve been in get you fooled that this is somehow a bear market.
I want to be very clear with you guys, a bear market in crypto historically is an over 50% correction, likely somewhere in the 70%, 80%, 90% range. That’s what a bear market is for an exponential asset like crypto.”
The strategist points to Bitcoin’s most recent higher lows and how they relate back to the king crypto’s highs set in 2017 as evidence that a potential rally is in the works.
“We’ve been seeing here all the while it’s been a shaky 2021 and a shaky start to 2022, we’ve been setting in higher lows that are interestingly enough not only pretty consistent with one another, but if you take into account the previous highs back in December 2017, you’ll notice that as we go through each of these lows, they line up each and every time.
Buyers are coming in and making previous resistance ascending support, and that is a really good telltale sign we’re not making really lower highs. The highs are relatively consistent… The lows are getting higher. The buyers are paying a premium here, and it’s showcasing that the market might be ready to turn back into forming the next uptrend.”
Merten says he sees BTC reaching an overall market cap of $4 trillion by late this year, putting its value at about $200,000, roughly 385% away from current prices.
“What we actually find that this ask we have here, this idea that Bitcoin could potentially rally up to $4 trillion sometime in October, November, to December of 2022, what we’re really asking for is just a 220% return from the previous all-time highs.
The last rally we had from previous all-time highs was a 392% move. Before that, it was a 359% move and on much shorter time frames than what we’re asking for here.”
Bitcoin is exchanging hands at $42,211 at time of writing, a 3.4% drop on the day.