In his latest video, Nicholas Merten from DataDash warns of a significant potential sell-off in Bitcoin that many might not see coming.
He emphasizes that Bitcoin has been stuck in a range near its previous all-time highs from 2021, but instead of breaking higher as many expected, the price has stagnated and even started to decline.
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Merten points out that there are several contributing factors to this situation, including reduced ETF inflows and selling pressure from institutional players, such as the German government.
According to Merten, Bitcoin's current position suggests that it could go in two directions. On one hand, Bitcoin might soon hit a bottom, which could be an ideal buying opportunity before prices rise again.
On the other hand, the price could drop further, possibly as low as $40,000, which is where Merten believes a significant support level lies based on historical trends.
Merten suggests that, while he is cautiously optimistic about a potential Bitcoin rally, the broader market may still have some rough patches ahead. He advises viewers to prepare for a possible capitulation event.
In short, Merten believes that while Bitcoin may still have some downside potential, smart investors should keep an eye on the market for signs of accumulation from institutional players. This could present a chance for a significant rebound, though timing will be crucial.
