Nicholas Merten from DataDash explains why Bitcoin’s recent crash was predictable and what comes next. He highlights leverage-driven liquidations, weak altcoin fundamentals, and the impact of global market trends.
Bitcoin Outlook
-
Bitcoin lost momentum after failing to hold the 21-day moving average, signaling weakness.
-
Leverage liquidations hit a record $1.9 billion, worse than the FTX crash, as traders were overexposed.
-
Exchanges benefit from liquidations, likely pushing Bitcoin toward $70,000 or lower.
-
Institutional buying isn’t enough to counteract heavy sell pressure.
Altcoins Are Struggling
-
Altcoins are collapsing, down 30-40%, with weak fundamentals and little investor confidence.
-
Meme coins and speculative tokens are getting wiped out, showing the market is risk-off.
-
No strong narratives exist, making it a bad time to bet on altcoins.
Ethereum and Solana Under Pressure
-
Ethereum is down over 70% from its highs, with high fees and no real innovation holding it back.
-
Solana and other major altcoins are also declining, proving no project is immune.
Macro Trends Are a Bigger Problem
-
AI is disrupting tech markets, with NVIDIA stock dropping after new competition emerged.
-
Big Tech is showing weakness, with Apple, Microsoft, and NVIDIA all at risk of deeper corrections.
-
Global trade tensions add more uncertainty, making risk assets like Bitcoin more volatile.
-
Bitcoin is not a safe-haven asset, it follows the stock market’s performance.
Final Thoughts
Nicholas expects Bitcoin to test the 200-day moving average, and warns that altcoins will continue to struggle. He advises staying on the sidelines, preserving capital, and waiting for clear signs of a market recovery before making new investments.
Now is not the time to gamble. Be patient, avoid leverage, and wait for real opportunities. 🚀