The recent Bitcoin rally was a dead hop, prepare for $ 35,000 before jumping to $ 200,000

A well-known analyst says that Bitcoin’s predictions of an explosive spike or catastrophic collapse are unrealistic and that BTC will have to painfully forge before it can hit a new all-time high.

In one Strategy meeting, commented Nicholas Merten that Bitcoin will reach a valuation of $ 200,000 by the end of next year, but before that it will test investor courage.

“What we’re likely to achieve is a rally to $ 200,000 by the end of 2022. But before that there is a very good chance of a challenge. The recent rally was nothing more than a dead hop and we will have to see more pain in the crypto markets before we can move higher. “

The DataDash host analyzes monthly charts to back up its claims. Bitcoin’s recent bullish price action is more of a dead cat bounce than evidence of the start of a big bull run.

“If we look at various exchanges and volume data, the volume and the decline we see here are on par with what we have seen over the long term.

On the daily chart, most price rallies or major breakouts do not last and only occur within a few hours. “

Source: Nicholas Merten

Merten is not optimistic about the crypto market. He cites a key metric from previous bull runs that shows how and why Bitcoin will rise over the next year.

“I think what we’re seeing in this bull market has happened before in the history of Bitcoin. It is one of the factors that determine how the market works by driving massive levers on each wave of the cycle.

If you take into account several on-chain indicators, the number of new on-chain wallet addresses, the number of wallet addresses that contain a certain amount of Bitcoin. Most of these key market metrics don’t show a massive influx of new users into the top crypto space.

What really drives the rallies is the leverage platform. Cryptocurrency credit and lending platforms allow you to borrow stablecoins or US dollars from your crypto … And so every time we review previous highs after long periods of consolidation, it is important that we see big breakouts. “

Nicholas Merten to say Investors should prepare for Bitcoin to drop below $ 35,000 before it spikes in spring 2022.

“I think most people who do technical analysis will show you that after days of retesting the $ 45,000 area, BTC is getting increasing support, and that’s great.

But to be honest, BTC had its first strong upswing but couldn’t make a higher low. This is really not a good sign.

That’s why I’m so confident. In the next few days, the price will drop below the trendline and not turn it around in support. That will most likely cause BTC to drop to around $ 30,000 to $ 35,000 and consolidate for a short period of time. “

Source: Nicholas Merten

According to Merten, BTC will then initiate a recovery phase and reach a new all-time high in the next year.

“The long-term trend is optimistic. BTC builds a high fundamental support right in the ascending support area with the previous resistance area …

In the long run, this creates the conditions for growth where we could really see BTC price rise and market cap hit a higher low, triggering an uptrend in 2022 to hit the target price of $ 150,000-200,000, what makes Bitcoin a trillion dollar valuation. “

Source: Nicholas Merten

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