3 Things to Watch for Bitcoin Breakpoint: DataDash

DataDash founder and veteran cryptocurrency analyst Nicholas Merten predicts more pain ahead for the Bitcoin price based on a combination of technical indicators and macroeconomic pressures.

The analyst cited price charts of three different assets to support his claim: BTC, ETH, and AAPL.

Where the bitcoin price will crash

in a video is posted On Wednesday, Merten started by pointing out how Bitcoin is still hanging well below the 200-week moving average (WMA) and the 200-day moving average (DMA). The first was historically the long-term Bitcoin price bottom but it turned from support into resistance for the first time ever in 2022.

“The fact that we are well off and we don’t even come to re-test 200 days, plus 200 weeks [averages]It’s a big worrying sign,” Merten said.

Second, the relief rally that Bitcoin has been able to muster from fresh 2022 lows “continues to weaken and weaken.” This indicates that the Bitcoin bulls are “not rallying” as they once did, which could signal an upcoming large capitulation wave.

Market order flow has also been negative week after week – meaning traders continue to sell and “take the best available price”.

“The industry is going through its biggest restructuring since the Mt. Gox hack back in 2014 and 2015,” Merten said.

As for the “turning point” for bitcoin, the analyst suggested that the asset could see a “major capitulation event” if the price breaks below the 2022 low around $15,600.

He said that Ethereum is also still at “extremely outstanding levels.” Merten predicted that a break of the 200 DMA against Bitcoin could put a “50% correction in the cards.”

The overall picture

Turning to the broader stock market, Merten highlighted a monthly chart of Apple stock, identifying signs of slowing momentum from its year-long bull run.

Like Bitcoin, the 200 DMA and WMA on the chart are both showing signs of a bearish reversal. Merten suggested that Apple, along with other big tech companies like Amazon, may deviate from the 200 WMA for the first time since the dot-com bubble.

Macroeconomic pressures from rising interest rates have helped many cryptocurrency companies fail in 2022, as the price of bitcoin is down more than 75% from its November 2021 peak. Sam Bankman FriedMerten’s FTX empire expects more unresolved companies as uncertainty is already building gray scaleCryptoCom and Binance.

He said, “While I’m not here to make unnecessary messes… there are still things being ironed out.”

The post 3 Things to Watch for Bitcoin Tipping Point: DataDash appeared first on CryptoPotato.

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