Data Dash – Bitcoin Is About To Collapse | It’s Time To Pay Attention… (29.04.2024 Summary)

Data Dash – Bitcoin Is About To Collapse | It’s Time To Pay Attention… (29.04.2024 Summary)

According to Nicholas Mert from DataDash, there are several indicators suggesting that Bitcoin may be headed for a significant price correction or collapse in the near future.

It’s time to pay close attention to these signals.

  • One major warning sign is Bitcoin’s struggle to break through and sustain prices above the 21-day moving average. After nearly seven consecutive days of declining prices, this resistance at a key technical level often precedes a trend shift to the downside and a healthy market correction.

  • Additionally, the positive narratives that had been driving Bitcoin’s recent price gains, like the halving event and the launch of Bitcoin ETFs, appear to have already been priced in. Without new positive catalysts or a surge in ETF inflows, there may be a lack of momentum to push prices higher from current levels.

  • The weakness isn’t isolated to just Bitcoin either. DataDash points out that the broader altcoin market, particularly smaller projects outside the top 10 cryptocurrencies, are also showing signs of struggle as they face resistance at important moving averages, suggesting potential for sizable corrections in these assets as well.

  • Beyond crypto, traditional equity markets like the tech-heavy NASDAQ 100 are also encountering headwinds, unable to break above their 21-day moving averages. This raises the possibility of a retest of lower support levels at the 100-day or 200-day moving averages for stocks.

Macro factors like the strengthening U.S. dollar could add further downward pressure on risk assets like cryptocurrencies if these trends continue, based on historical precedents.

While Datadash doesn’t foresee Bitcoin collapsing to zero, he strongly emphasizes paying attention to what the price action is signaling. He suggests that a 30% or larger correction would not be unusual for Bitcoin and could present better risk-reward opportunities for investors looking to buy the dip for potential rebound trades or position for Bitcoin’s next bull cycle.