A closely followed crypto analyst is predicting an implosion for Bitcoin (BTC) and altcoins as he believes that a recession and a stock market collapse are on the horizon.
In a new strategy session, Nicholas Merten, the host of DataDash, tells his 511,000 YouTube subscribers that Bitcoin bulls are betting on a sustained rally following BTC’s breakout performance to start the year.
However, Merten says that crypto is likely at the tail end of its rally as he believes the Federal Reserve will not create the conditions needed to spark a new bull market.
“This focus that a lot of the bulls are betting on, which is that the Fed [is] going to save the day, everything’s going to start moving up and accelerating again and kick off a new bull market…
The Fed is not going to be able to stimulate the kind of risk-on behavior that you see in a typical bull market, especially in alternative assets like altcoins that are definitely riskon. This is not telling me that the markets are ready to sustain a long-term uptrend. If anything, this is telling me we’ve been through a pretty bloated relief rally that is likely going to fade over the next coming weeks and months.”
Merten goes on to say that investors should expect an upcoming recession and be wary about narratives centered around BTC spiking to $1 million due to the economy crashing.
“The only narrative that people are excited about is AI (artificial intelligence), which has definitely made progress, but is not looking to make any profit anytime soon, more specifically, burning capital over the next couple years going into a tightening environment, potential recession over the next couple of months.
I just really can’t make these bets… I know a lot of people can get people hooked in, saying, ‘Bitcoin’s going to $1 million, the system’s gonna collapse…’
If you guys want a little bit of exposure, if you want to hedge your wealth, all you need to have is fractional exposure. You don’t need to go all in on something. You’ll still make great returns and hedge yourself and protect your core wealth if the entire system collapses.”
The analyst also says that the US stock market is approaching a key resistance level, indicating that a significant correction may be in sight.
“Unfortunately, it does not look good here folks. Since back in January of 2022, around the same time we got the red flip on Bitcoin, we can see that the red resistance band has been a really good gauge. When price starts to get close to this range, inside the red band, it’s time to start getting ready to go short. We are already relatively close to this band.”
Bitcoin is trading for $28,015 at time of writing, a fractional gain on the day.
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Source: https://dailyhodl.com/2023/04/09/crypto-analyst-predicts-bitcoin-and-altcoin-implosion-amid-incoming-recession-and-stock-market-collapse/