A widely followed crypto analyst is warning that Bitcoin (BTC) is getting ready to sink lower after losing the $30,000 price level.
DataDash host Nicholas Merten tells his 511,000 YouTube subscribers that more market participants are looking to sell BTC than buy it – a trend that will drive the king crypto’s price lower.
“We have continued to face stagnation here at around $30,000, and week by week, we are proving that this is a range of distribution, a supply-side range for price rather than a demand side.
Essentially, there are more people looking to offload positions than really buy positions, and that market order sell-side pressure is causing prices to stagnate yet again, like they did in April.”
According to the analyst, BTC closing this week below its current support level would be confirmation that another leg down is approaching for the king crypto.
“If this week we close a mere few hundred dollars below where Bitcoin is now, we are going to get that red flip, and I would say if we get about two weeks of red confirmation here, this is going to give us our ample opportunity to start building a short position in Bitcoin’s price.
It’s not about getting the absolute bottom or the top of these plays; it’s about waiting for the vital signs that showcase that the trend is ready to reverse…
And it’s not just Bitcoin here. I’m not here to bash on crypto. It is what it is; we have to understand what’s going on in the macro perspective here because if asset markets aren’t ready to kick off a new bull run, we need to be protective… And unfortunately, for the bulls, the weakness over the past couple of months has been full enough proof here that we are ready to start moving to the downside.”
BTC is worth $29,675 at time of writing, up 2.8% in the last 24 hours.
Analyst comment
This news can be considered as negative for the market. The analyst believes that Bitcoin’s price will continue to decrease due to more people looking to sell than buy, causing prices to stagnate. If BTC closes below its support level this week, it would confirm a downward trend. The analyst suggests that this may be a good opportunity to build a short position in Bitcoin. The current price of BTC is $29,675, showing a slight increase in the last 24 hours.
