Bitcoin Faces Deeper Decline as Market Sentiment Turns Bearish: DataDash

• Crypto analyst Nicholas Merten expresses heightened concerns as market sentiment towards Bitcoin shifts to bearish.
• The bearish trend is not only reflected in Bitcoin’s price action but is also evident in key technical indicators.
• Merton scrutinizes the idea of Bitcoin ETFs as a potential rescue for the market.

In a stark turn of events, the once-bullish sentiment surrounding Bitcoin has taken a sharp nosedive, leaving investors and enthusiasts concerned about the crypto’s future. In a recent video by Nicholas Merten, renowned crypto analyst and founder of DataDash, he delved into the ominous signs indicating that Bitcoin’s price decline might be far from over.

Bitcoin, the pioneer cryptocurrency that once held the promise of transforming financial landscapes, is now grappling with a troubling reality as its value continues to plummet.

Merten’s analysis reveals that the bearish trend is not only reflected in Bitcoin’s price action but is also evident in key technical indicators. He points out that the critical support levels, once seen as a cushion for the cryptocurrency, have turned into stubborn resistance, further eroding investor confidence.

Bitcoin here is kind of giving us a Telltale sign that we are ready for a major shift to the downside… essentially speaking the price action alone is not looking good…

Furthermore, he highlights that Bitcoin’s recent price drop, combined with a broken ascending channel and sustained periods of red on key momentum indicators, underscores a significant weakening of the bullish narrative. Additionally, he highlights that Bitcoin’s momentum indicators have entered a prolonged red phase, a trend not seen since November 2022.

Looking at longer-term time frames, he emphasizes that the weekly and monthly charts paint an even bleaker picture. He notes that Bitcoin’s momentum indicator, which had remained in the blue zone for a considerable period, is now on the brink of turning red. This suggests a prolonged decline that could mark a significant shift in the crypto landscape.

Merten’s observations extend beyond Bitcoin’s immediate woes, addressing the broader cryptocurrency market. He suggests that even major altcoins like Ethereum are struggling to find support, with a potential collapse in Ethereum’s price looming. Merten questions the industry’s fundamentals and the lack of new projects or use cases driving the market forward.

Furthermore, Merten scrutinizes the idea of Bitcoin ETFs as a potential rescue for the market. He argues that the availability of numerous avenues for institutional and retail investors to enter the crypto space, combined with the fading interest in cryptocurrencies, makes the case for an ETF less compelling than before.