Closely followed analyst Nicholas Merten thinks that the Bitcoin (BTC) and crypto markets are at the beginning of a long bear cycle.
In a new video, the DataDash host told 515,000 YouTube subscribers that other markets are already starting to signal the emergence of an unfavorable macro environment, which will naturally put pressure on digital assets.
“Commodities are starting to rise again, the dollar index starts to rise, and on top of that, the bond market begins to price in with continued increases in interest rates. The stock markets were living in a fairy tale and in reality the markets are not ready to sustain the bull market because of the inflation rate.”
On the other hand, Merten adds that a short-term bounce is also possible for Bitcoin and perhaps Ethereum (ETH). In such a case, the high prices we saw earlier this month could turn into resistance pushing BTC and ETH lower and into a longer bear market.
“Potentially for Bitcoin and Ethereum in the short term [24.000 dolar] I wouldn’t be surprised if we see a rebound on the 4-hour timeframes to see if we can break above it and start using those ranges as resistance.
This shows that we shouldn’t rule out that we can get a short-term recovery from said range here, but I don’t think you’re going to be back in that range guys. I don’t think it will be any better than it was in the last few weeks, until much longer and a lot more corrections on the downside.”
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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.