Nicholas Merten, a renowned cryptocurrency expert, predicts that Bitcoin will soon undergo another significant sell-off.
In a recent video, the Datadash host informed his 515,000 YouTube subscribers that he believes the leading cryptocurrency will see another breakdown before reaching a strong support level between $12,000 and $14,000.
“Is there going to be another sell-off? … Will there be one last price drop before we set our sights on a possibly more reliable fundamental channel around $12,000 to $14,000 for Bitcoin? Is it really that bizarre to imagine it might happen?
Is the bear market likely to continue for longer?
In his video, Merton refers to the Net Unrealized Profit and Loss (NUPL) measure, an on-chain indicator that effectively shows whether bitcoin owners are making money or losing money. Technical analysis shows that investors are more likely to make gains than losses when NUPL is greater than zero. Below zero, investors are incurring more losses than gains.
The decrease in Bitcoin’s NUPL, according to him, hasn’t been sustained long enough for it to be safe to say that it is gone.
According to their technical analysis, the NUPL model reads between 0.7 and 0.75 when it reaches bull market highs, which are signs of overbought, and then it starts charting in negative territory, Where the price is less than the normal price of most. Bitcoin that was transferred on-chain.
He continued by saying that once the price hits this blue range, which occurred briefly in June, it tends to stay here for some time during typical bear markets.
As BTC has never traded during monetary tightening and interest rate hikes, experts believe that BTC may be entering uncharted territory. He also expressed doubts that the Federal Reserve will return to quantitative easing in the near future as it has done in the past.
