Cryptocurrency expert Nicholas Merten from DataDash has shared crucial insights into the current state of Bitcoin and the broader crypto market. The CoinSpeech team has collected the most important takeaways from his recent appearance. You can find Nicholas Merten’s new video below.
Bitcoin’s Crucial Price Levels
According to Merten, Bitcoin is at a pivotal moment. He emphasizes the significance of the moving averages, stating, “This is again as we’ve been talking about the Battle for the moving averages essentially the bull and bear tendencies that are going to play out here between these critical moving averages.” The 100 and 200-day moving averages are especially crucial during this period of consolidation.
Daily and Weekly Charts
Discussing the broader timeframes, Merten mentions, “The big thing we’re watching for is how price interacts here with the 100 day moving average and the 21-day after the last couple of days where we generally Consolidated sideways.” The ability of Bitcoin to maintain daily closes above certain levels will be critical for setting an upward trend.
Short-Term Indicators
Shorter-term timeframes like the 4-hour time frame moving averages are also under scrutiny. “We have EMAs or exponential moving averages for the 9 EMA, the 21 EMA, and the 50 EMA on the 4-hour time frame,” Merten elaborates. Utilizing these specific timeframes helps traders make more informed decisions.
Altcoins and Trend Shifts
While Bitcoin’s momentum is critical, Merten also talks about opportunities in the altcoin market. “We are technically down right now in percentage terms by about 36%,” he says, adding that some altcoins are presenting buying opportunities at discounted rates.
Be Patient for Confirmation
Merten advises patience before making any significant investment decisions. “If we do not hold in those moving averages we have not confirmed any kind of significant Trend,” he underscores, urging traders to wait for clear signals before entering the market.
Equities and Macrosphere Concerns
Merten also draws attention to broader market indicators. “There’s an important set of things to be concerned about when it comes to equities,” he states, cautioning that risk-off sentiment is starting to grow. “We were not able to make any new accelerated moves in the S&P 500,” he adds, indicating potential weaknesses in traditional markets as well.
Analyzing the Market
Emphasizing a comprehensive approach, Merten says, “When it does come High time to start building allcoin positions, then we can start to bet on those plays that are winning out the market that are bringing in the most liquidity, bringing in the most attention.”
The Importance of Looking at Historical Data
Lastly, Merten highlights the importance of historical data. “Most people are watching the hourly chart, they’re watching the 5 minutes, they’re watching the daily; they’re not coming and zooming out here to the quarterly chart and looking at the last 100, near 100 Years of price action here,” he observes, emphasizing a long-term rather than short-term view.