Closely followed crypto analyst Nicholas Merten thinks that the price of Bitcoin (BTC) is about to surprise everyone as the bearish trend increases. The analyst made remarkable predictions in the YouTube video he shared.
According to Merten, while price action for Bitcoin (BTC) continues to look relentless, one indicator reveals that the bearish trend has lagged behind.
“I want to take a risk and make a bold claim about the crypto markets. Especially when the emotion is incredibly fearful right now. Whether you believed we should have seen more declines in the previous months, thought we were in a bear market, or thought the last correction was a bottom…
Right now we are much more likely to see a significant rally in price picking up most of the losses here than continuing to the downside.”
Merten noted that large increases in volume on the Bitcoin (BTC) chart have served as historically reliable indicators to confirm trend reversals. The analyst pointed out that the volume gains in both March 2020 and May 2021 coincided with the bottom of the price corrections.
With a massive surge in volume following the collapse of the Terra ecosystem and subsequent market volatility, Merten thinks the Bitcoin (BTC) price is poised for an unexpected rally.
“The weekly timeframe gives us a very good overview of when there have been major liquidations in the market throughout history and when there have been sudden movements in the market that actually led to increases in volume, thus a significant drop in prices.
This market is driven by leverage. Most of the big moves up and down are due to long-term players in the market who risk a little more than they should.
This has led to flare-ups in price, market rebounds, and all-time highs we set. but it also played a role in the sharp 50% corrections we’ve seen many times before during this cycle.”
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.