Popular crypto trader Nicholas Merten thinks there is a very important Bitcoin (BTC) chart that no one is talking about right now.
In a recent video session, the analyst told 515,000 YouTube subscribers that Bitcoin is forming a long-term bullish pattern against the stock market indices chart.
As is known, there is a traditional narrative that Bitcoin is a risky asset. This narrative theoretically leads to the belief that BTC should sell twice or three times more than stocks when the Fed goes into quantitative tightening. But that was not the case, according to the crypto analyst. Merten pointed to the BTC/Nasdaq Composite (BTCUSD/IXIC) chart as proof.
“Look at the chart over there. Since December 2020, the rate (between BTC and Nasdaq Composite) has consistently made healthy higher lows (a higher low than the previous low) each time. To put this in perspective, here is a 48% increase from the previous low to the new low in November – December. Bitcoin has outstripped stocks by 48%.”
However, Merten underlined that in times of economic recession, Bitcoin can be an asset that “shows unexpected success”, that is, a “surprise horse”.
“Even if the stocks are in an absolute panic mode, the Bitcoin price is doing pretty well. Here we are making higher lows in price and here we have made some higher highs (a higher high from the previous high) in the short term since the beginning of the year. This is really interesting. This is something that cannot be ignored.”
The analyst added that Bitcoin has formed a “seismic wedge” against stocks that could separate crypto from its correlation with stocks.
You can check the price movements here.
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.