Popular analyst Nicholas Merten lays out a timeline for Bitcoin (BTC) and crypto to recover from the collapse of digital asset exchange FTX and its associated entities.
In a new strategy session, Merten tells his 512,000 YouTube subscribers that with Bitcoin showing obvious weakness as it remains below the 200-week moving average, another drop is more than likely.
It sets a price target of around $13,600 for a possible bottom in the Bitcoin bear market.
“We are well below that 200 week moving average. It is the first in the history of Bitcoin. On top of that we just look at the percentage decline from top to bottom, we came up with about 77.6%. We are definitely getting closer to that 80% target which I think many of us would agree with is probably more in line with what we should expect. But, important to take a step back, another reminder here, that another 3% or 4% for Bitcoin takes a lot of effort.
This is going to take us well below that $14,000 target towards around $13,600.
I would say, again, even though everyone has different opinions on this, we have to be a little more careful. I would expect that if you are really trying to buy the dip and not expecting a trend reversal… We would probably expect something in that pocket somewhere around 82% and 84% as we let’s hit that big even number of $10,000.
Merten says the collapse of FTX, compounded by the other recent failures of crypto lending firm Celsius and brokerage firm Voyager, will likely keep prices consolidating for at least another year, if not two more.
“I know a lot of people want to buy the flash dips here, but as you can see the price is going to take a long period of time – even if it’s the bottom – it’s going to take a long period of time to consolidate before things are fixed. Trust me, FTX, the whole situation is a complete mess.
It’s an embarrassment to the industry, and believe me, I have no reason to say it… It’s going to set this industry back. Also, everything that happened with Celsius and Voyager and all the major players, it’s going to set this industry back a year and more. You can bet on it. At a minimum, potentially a year or two years with the distrust that this will create for the institutions.
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