A popular crypto analyst is considering how low Bitcoin (BTC) could go as the markets head into the weekend on a sour note.
In a new strategy session, Nicholas Merten gives his 516,000 YouTube subscribers a weekly wrap-up after the Federal Reserve raised interest rates and digital assets wilted under major sell-side pressure.
“I want to go ahead and talk a little bit about what we talked about as our worst-case scenario. I’ve got to be honest with you guys, I’m gonna stick to my guns here again.
Maybe I’m wrong two times in a row, but I’m going to be confident in my statement here in the sense that, while we could expect some further decline in price, there is a limit, a threshold where it genuinely makes sense at the end of the day to see price actually go down, until we start to see people limit buying and also leading the charge on the market order flow, which is going to drive price back up.”
The Data Dash host goes on to say that while he can’t pinpoint the exact date or how long the process will take, his intent is to provide a reasonable BTC valuation range so viewers can dollar cost average (DCA) while building their positions. He identifies the cumulative market cap of Bitcoin and Ethereum (ETH) as falling to sub-$900 billion, whereas that figure currently stands at $1.1 trillion.
Merten concludes by comparing previous cycle tops and corrections to show that even after significant drops, BTC never actually fell as low as the preceding cycle’s peak.
“This is the point that I want to bring here, all the while we could come close to it, we could come here toward $30,000. I think it’s completely irrelevant and out of the question to think that we’d come down and touch $20,000.”
At time of writing, Bitcoin is down 1.22% in the last 24 hours, priced at $36,036. BTC remains down 9.6% from its weekly high of $39,874 on Wednesday.
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Source: https://dailyhodl.com/2022/05/07/heres-the-worst-case-scenario-for-bitcoin-btc-amid-crypto-market-tumble-according-to-analyst-nicholas-merten/