The important crypto analyst Nicholas Merten says that there are a few factors that could trigger a fall in BTC’s price. This drop could reportedly be bigger than 60%.
New BTC price prediction is out
A crypto analyst with a large following has issued a warning about a potential Bitcoin (BTC) crash, citing several factors including the possibility of a recession.
In a recent strategy session, Nicholas Merten, the host of DataDash and a popular YouTuber with over 512,000 subscribers, explained that Bitcoin could experience a significant drop of nearly 63% from its current value.
This is due to the formation of a descending accumulation channel that was first seen in 2021. Merten cautioned his viewers that they need to prepare for the possibility that Bitcoin could drop even further, to around $10,000, which may seem unlikely but is a real possibility.
The analyst also highlighted the Federal Reserve’s hawkishness and a potential recession as two factors that could trigger a BTC collapse by further reducing market liquidity.
It’s important to be cautious when it comes to Bitcoin during a potential recession, as liquidity in the market is limited.
While the past decade has seen impressive growth for Bitcoin, it was during a time when there was greater potential for growth, the halving event had a larger impact, and there was more support from central banks.
However, it’s uncertain if we’ll return to that type of environment in the near future, as demographic changes and macroeconomic factors may make it less likely for the Fed to intervene aggressively in order to maintain inflation at a modest target.
It’s important to keep these factors in mind when considering investing in Bitcoin.
Bitcoin is trading for $27,019 at time of writing, up 2.6% in the last 24 hours. There have been all kinds of optimistic predictions about the price of Bitcoin these days and e suggest that you stay tuned for more news.
