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Cryptocurrency Analyst: 3 Signs to Identify Bitcoin Price Falling Points

تحلیلگر ارزهای دیجیتال: ۳ نشانه برای تشخیص نقطه سقوط قیمت بیت کوین

As the cryptocurrency winter continues, more analysts are convinced that Bitcoin will experience another price crash before starting a new uptrend. In his latest video, seasoned cryptocurrency analyst Nicholas Merten points out 3 signs that can help investors spot a breaking point in the current trend.

To the report Crepito Potito, DataDash founder and seasoned cryptocurrency analyst Nicholas Merten, citing technical indicators and taking into account current macroeconomic issues, predicts that we will see further declines in the price of Bitcoin.

This analyst points to the price charts of Bitcoin, Ethereum and Apple to prove his claim.

Bitcoin price crash point

At Video Published on Wednesday, Merten began his analysis by pointing out how Bitcoin’s price remains well below its 200-week and 200-day moving averages. Historically, the first has been the price floor of Bitcoin for a long time, which turned from support to resistance for the first time in 2022.

Cryptocurrency Analyst: 3 Signs to Identify Bitcoin Price Falling Points
200-day and 200-week moving average on the daily chart of Bitcoin price

Merten said:

The fact that the price of Bitcoin is well below the 200-day and 200-week moving averages and is not even about to test crossing them is a very worrying sign.

Additionally, Bitcoin’s price bounces from its 2022 lows continue to get weaker and weaker. This trend indicates that Bitcoin bulls are not taking action when they should, as in the past, and could be a sign of a major capitulation wave.

Read more: What is the difference between bull and bear digital currency trading?

The flow of market orders has also decreased week by week; This means that traders continue to sell and buy Bitcoin at the best available price.

Merten added:

The industry is going through its biggest restructuring period since the MT hack. Gax in 2014 and 2015.

Regarding the possibility of Bitcoin’s breakpoint, the analyst argues that if the price drops to the level of the lowest price floor in 2022, around $15,600, Bitcoin could experience a major surrender wave.

He said that the price of Ethereum is also at a very low level. Merten predicts that a breakout of Ethereum’s 200-day moving average against Bitcoin could lead to a 50% price correction.

Review the big picture

Looking at the stock market, Merten points to the monthly chart of Apple’s share price and signs that its multi-year uptrend is slowing down.

Cryptocurrency Analyst: 3 Signs to Identify Bitcoin Price Falling Points
200-day and 200-week moving average on daily chart of Apple stock price

Like Bitcoin, Apple’s 200-day and 200-week moving averages are both showing the beginning of a downtrend. Merten believes that Apple’s share price, along with other big tech companies like Amazon, could possibly fall below its 200-week moving average for the first time since the dotcom bubble.

The 75% fall in the price of Bitcoin from its highest level in November 2021 (Aban 1400) along with macroeconomic pressures caused by the increase in interest rates caused the bankruptcy of several digital currency companies in 2022. After the collapse of Sam Benkman Fried’s empire, Merten expects more companies to file for bankruptcy, such as the current growing skepticism about Binance, Grayscale, and Crypto.com.

This analyst noted:

While my goal is not to increase fear, mistrust and doubt… there are still companies that fail.

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