As bearish sentiment mounts, closely followed crypto analyst Nicholas Merten says Bitcoin (BTC) is about to surprise everyone.
In a new strategy session, Merten tells his 516,000 YouTube subscribers that while price action continues to look grim for BTC, one indicator is suggesting that the downward trend is behind us.
“I want to go out on a limb and make a bold claim about the crypto markets. Especially as sentiment is incredibly fearful right now. That is that right here, right now, no matter if you believe that we have further to go down in price in the preceding months, that we’re in a bear market, or if you feel that the recent correction was the bottom…
Right here right now, it is much more likely than not that we’re going to see a significant rally in price recovering a lot of the losses, than continue down to the downside.”
Merten says that big spikes in volume on Bitcoin’s chart have historically served as reliable indicators to confirm trend reversals. He points out that volume spikes coincided with the bottom of the price corrections in both March 2020 and May 2021.
With a large volume spike now printed following the collapse of the Terra ecosystem and the subsequent volatility in the market, Merten says Bitcoin is gearing up for an unexpected rally.
“The weekly timeframe gives us a very good overview of when throughout history there were capitulation events, that there were major liquidation events in the market, that effectively led to spikes in volume and therefore a significant decline in price…
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That has led to the exacerbated rallies in price, recoveries in the market, and all the new all-time highs that we’ve set but it also played a role in the sharp 50% corrections that we’ve seen throughout this cycle, many times before.”
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Source: https://dailyhodl.com/2022/05/23/bitcoin-btc-is-about-to-do-the-unexpected-as-one-historically-accurate-indicator-pops-analyst-nicholas-merten/