Closely followed crypto analyst Nicholas Merten explained that Bitcoin (BTC) may be reflecting a technical price pattern that was previously displayed in the S&P 500 index.
Speaking in the new video he published on his YouTube channel, Merten said, BTCof S&P 500He stated that ‘ may be following the pattern he lived between “2000 and 2008”, but it happened in a much smaller time frame.
Merten examined the model, noting how the S&P 500 rose to $1,500 in 2008, then went down to $770 over time, and then repeated the whole process for 4 years.
Since crypto markets are price-correct, Merten also noted that institutions can wait for this pattern to happen before achieving an optimal entry point.
“Corporations are big buyers who need to build big positions; They do not like a period when the markets are quiet, stagnant and lack enthusiasm. They like to buy during these discount opportunities. They enter slowly, frightened. They are the ones who set the bottoms here.
I think that’s what we’re seeing here. I think here we are reliving history from the S&P 500 in the crypto markets. But instead of looking at the monthly candles here, I’d say it’s happening more on the weekly chart… In crypto, things are getting a lot faster because it’s a much smaller market.”
If the pattern materializes, Merten will see it before it rebounds and resumes an uptrend. Bitcoin (BTC) He predicts that the price may drop to around $30,000.
While the scenario may seem grim, the crypto analyst says it will be more of an opportunity than anything else.
“While I think this price will pull back here, this is still not a reason to panic sell, exit the market and run for the hills. In fact, it could only be the catalyst for establishing a long-term accumulation pattern that will allow Bitcoin to regain market dominance, move higher and visit the $150,000 to $100,000 level we trust enough. But other than that, we’ll need to give altcoins a huge opportunity to start instilling more market dominance than they did in this cycle.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.