Analyst Nicholas Merten, bitcoin He is of the opinion that the recent jump in price sets a “bull trap” before an impending recession. Here is the popular analyst’s warning to investors.
Nicholas Mertenclaimed that the rally that Bitcoin recorded in 2023 was similar to the three relief rallies seen before. According to the analyst, lower levels are experienced after these rallies.
“I want to go further and highlight the rise that has been recorded. Currently, we have increased by 46%, and from June to August, we have seen an increase of 43%. From November to January, we experienced a 40% increase. It hits the typical boost we get during relaxation rallies. I recommend paying attention to these details.
Analyst Explained: Is Winter Ending for Bitcoin?
How much ‘overbought’ there is right now is a problem in itself. We hit the highest overbought highs in Bitcoin price since January 10, 2021.”
BTC price It was trading around $20,970, up 35% from the November 2022 low of $15,698.
Koinfinans.com As we reported, Merten also discussed the possibility that global stocks could record big outflows. He thinks that if this happens, another crypto winter will start because of the correlation.
“When it comes to the overall performance of equities and what impact this will have on crypto, there is no doubt that global equities are in a big breakout.
But if we go into a recession and stock valuations drop to lower levels, then we will feel the same pressure on crypto. This will signal a crypto winter.”