Popular crypto analyst Nicholas Merten warns that Bitcoin’s (BTC) recent surge of over 56% does not necessarily mark the start of a new bull market.
In a new video update, the host of DataDash tells his 511,000 YouTube subscribers that after BTC’s rally from the lows, the flagship cryptocurrency is likely reversing its price trend.
”We have seen stagnation in momentum roughly since back in late January, signs of distribution where institutions are taking advantage of the upward market order flow and buy-side pressure from retail and other speculators and traders in the market.
On top of that as well, we’ve seen the leading indicator that we utilize for trend reversals flashing, that it’s likely moving lower after a 5% move that we got yesterday. We already started to get some warning signs the other day here, showcasing that the momentum had stalled and a trend reversal is likely in play, but we got a clear decisive move of 5%, the biggest candle move we’ve had since back on January 20th…
We are seeing signs that the vast majority of this potential relief rally, I think, has already come into play. That is what I’ll say here today. The vast majority of those returns have come in, and I think we’re seeing some clear signs that this is not the beginning of another bull market.”
Merten also says there are clear indications that the bear market is not yet over, including the recent crackdown on staking from US regulators.
“Why am I so confident in this? Because it’s not just Bitcoin, and it’s not just Ethereum. Many investors are probably seeing scary news that might be the initial catalyst for the momentum of the downside, that is the SEC and other regulatory authorities going after exchanges like Kraken and potentially Coinbase and many other names around offering staking as a service.”
Staking allows people to earn yields or additional coins on Ethereum (ETH) and other proof of stake crypto assets. Merten says it matters that regulators are going after the service because it is a big value proposition for crypto.
“This is a big feature for a lot of people and it’s a big reason why a lot of people buy names like Ethereum, similar to buying other names and different types of assets that might give you some kind of yield.”
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