Who do you believe? The analysts who say BTC is on the way or on the way down? Merten shares a conservative point of view with an ensuing warning.
In a new video update, Merten tells his 511,000 YouTube subscribers that what has historically been a “buy-the-dip” support level for Bitcoin is now disintegrating.
“The fact that we are well suspended and not even coming up to retest those 200-days (moving average), as well as the 200-week [moving average], is a big worrying sign here.
And when we just zoom out here you can start to see what I mean here as the 200-week usually was the ‘buy the dip’ opportunity for Bitcoin. It is now acting as resistance alongside the cross of the 200-day below that 200-week. So this is already one big issue here.”
Merten foresees a scenario where BTC briefly rallies to about $18,000 before turning around and triggering a capitulatory event that takes the flagship crypto asset to new lows near $13,000.
“With Bitcoin, I want to emphasize our breaking point here, which is if we really break below the previous lows and this line of sloping resistance, if we can’t hold this descending line of previous resistance, that is going to be a major warning sign.
Essentially speaking, if we see price even if it comes up here towards the previous resistance range or previous support range at around $18,000 and we zigzag below here breaking below those previous lows [of about $15,400] that is your warning sign for major capitulation.”
At time of writing, Bitcoin is changing hands at $16,804.
Featured Image: Shutterstock/Lotus_studio
Buy the Dip
Per TheFace.com: In layman’s terms, “buy the dip” is a phrase used by the online financial market and within cryptocurrency to encourage people to invest when a stock has dropped in price.
Those that use the term generally believe that the stock market “dip” is a short-term event, and that the stock that has “dipped”, like Dogecoin, Ethereum or Bitcoin, will enjoy an inflation in price even greater than its original market value later down the line.
In other words, invest in the dip means reaping the rewards.
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