A widely followed analyst is saying that Bitcoin (BTC) is sending worrying signals as the flagship crypto asset languishes about 20% below the all-time high reached in March.
In a new video, analyst Nicholas Merten tells his 509,000 YouTube subscribers that Bitcoin is showing weakness after failing to overcome a major resistance level after several attempts.
“[Bitcoin] price action is showing some pretty bleak signs here… just from a pure price analysis perspective, right now we are still facing consistent resistance for… more than a week and a half here for Bitcoin against that 21-day moving average. We have not gotten one daily close even into the pocket yet every time getting shot down here.”
Merten also says that the price of Bitcoin has now collapsed below the 200-day moving average, which typically indicates a bearish phase.
“This is not good guys, this is really not a good thing to see in price.”
The widely followed cryptocurrency analyst further says,
“What I care about is getting back above those prior highs. If we can’t really get above there and really pioneer new bull market, so to speak… I don’t know how confident I can say I am that this is a new bull market if we can’t clear above that range from the prior highs [of around $69,000] back here in November [of 2021]. Of course, we went a little higher [in March of 2024] but we’re pretty much chopping here.
So unless we can really confirm this prior resistance [of $69,000] in the past as a new base, so to speak, and really slingshot here and get a weekly close above the $72,500 target… then I’m not really interested.”
Bitcoin is trading at $59,381 at time of writing.