Crypto market analyst Nicholas Merten recently shared his in-depth viewpoints on Bitcoin, altcoins, and broader asset markets. The CoinSpeech team has collected the most important insights from his recent appearance. You can find Nicholas Merten’s new video below.
Bitcoin’s Stubborn Resistance
According to Merten, Bitcoin has been “ranging at the same price range” for over three months. The key level Bitcoin needs to surpass for a significant daily close is between $72,000 and $72,500. He highlighted the significance of this range, saying, “Every single time we’ve come up here towards around $71,500 to around $72,500, we constantly get shot down.”
Merten warns of potential scenarios where Bitcoin either heads lower or struggles to sustain a rally even if a breakout occurs. He estimates a “60-66% chance” of Bitcoin experiencing lower levels soon.
Altcoins: High Risk, High Reward
Shifting the focus to altcoins, Merten discusses the risk profile: “A 32% correction back here in early April could easily play out here again down to the 200 week.” He emphasizes that the market’s current complacency could lead to significant price corrections. He explains, “Capitulation is where the best buying opportunities can come midcycle for further returns.”
Current altcoin trends suggest that more corrections are imminent, and Merten strongly advises against making rushed trades: “I would wait for much more Trend confirmation before I do something like that.”
The Stock Market’s Overheated Surge
Merten also addresses the recent stock market behaviors, specifically the S&P 500, and Nvidia. “Chances are you’re looking to top out here around 5,500 points on the S&P 500.” He remains cautious about Nvidia’s inflated valuation, advising that “the risk on sentiment incentive to go long to be along these plays is really starting to fade.”
Strategic Positioning for Future Gains
Discussing some cryptocurrency plays to watch, Merten mentions, “If there isn’t momentum in altcoins, I’m not really looking to make trades in it just yet.” He outlines his interest in specific coins like Render, Stacks, and Fetch, but remains cautious about building positions until stronger trends emerge.
He advises to monitor lower entry points, “corrective entries below the 200 day pocket and above the 200 week pocket somewhere in that valuation range.”
Merten also turns attention towards investing in emerging projects, highlighting opportunities with platforms like Angelblock and Al of Zero. According to him, “This is one of which I believe is kind of a silent diamond in the rough.”
Lastly, his closing advice resonates heavily in keeping investors alert: “There are lots of things that you should keep on your radar…it’s about knowing when to ride the wave on these different positions and lock in profits when no one else is willing to.”