A popular crypto analyst is considering how low Bitcoin (BTC) could drop as markets head into the weekend on a sour note.
In a new strategy session, Nicholas Merten gives his 516,000 YouTube subscribers a weekly recap after the Federal Reserve raised interest rates and digital assets wilted under heavy sell-side pressure.
“I want to go ahead and talk a bit about what we talked about as our worst case scenario. I have to be honest with you guys, I’m still going to stick to my guns here.
Maybe I’m wrong twice in a row, but I’m going to be confident in my statement here in that while we can expect further price declines, there is a limit, a threshold where it has really makes sense at the end of the day to see the price go down, until we start to see people limit their buying and also lead the load on market order flow, which is going to push prices back up .
The Data Dash host goes on to say that while it cannot determine the exact date or duration of the process, its intention is to provide a reasonable BTC valuation range so viewers can calculate the average cost (DCA ) while building their positions. It identifies the combined market capitalization of Bitcoin and Ethereum (ETH) as falling below $900 billion, while that figure currently stands at $1.1 trillion.
Merten concludes by comparing previous cycle highs and corrections to show that even after significant declines, BTC never fell as low as the previous cycle peak.
“That’s the point I want to make here, even if we could get close to it, we could come here around $30,000. I think it’s completely irrelevant and out of the question to think that we would go down and hit $20,000.
At the time of writing, Bitcoin is down 1.22% in the past 24 hours, priced at $36,036. BTC remains down 9.6% from its weekly high of $39,874 on Wednesday.
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