Bitcoin is poised to rally soon despite its low price, Merten said.
Despite the negative performance of Bitcoin (BTC) in recent times, a popular cryptocurrency analyst believes that the world’s largest cryptocurrency by market capitalization will soon turn things around for good in earnest.
Nicholas Merten, a popular cryptocurrency analyst, said recently on his YouTube channel that the top asset class has recently flashed a historical indicator, which is always accompanied by a surge in price.
According to Merten, who has over 500,000 subscribers on YouTube, Bitcoin’s recent price crash presented opportunities for many traders, thus prompting a surge in the assets’ trading volume.
Bitcoin’s Historical Indicator Suggests Price Will Soon Surge
Merten said that Bitcoin’s surge in trade volume has been used as an indicator to determine trend reversals. Notably, the recent spike in Bitcoin volume is the same as events recorded in March 2020 and May 2021, respectively.
For Merten, regardless of what crypto traders think about the asset class, Bitcoin is poised for an imminent rally soon, which will help patient holders recover the losses they have incurred over the past few weeks.
“Right here right now, it’s much more likely than not that we’re going to see a significant rally in price recovering a lot of the losses, rather than continuing to the downside.
This market is driven by credit. Is driven by leverage. A lot of the major moves upward and downward are caused by long-term players in the market who are taking on a little too much risk than they should. 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. Merten said”
Bitcoin’s Recent Underperformance
Meanwhile, it is no longer news that the cryptocurrency market suffered a devastating blow following the collapse of Terra ecosystem tokens.
Bitcoin, which was a few dollars away from hitting $40,000, plummeted below $27,000 in the past week, causing widespread capitulation.
While many traders have converted their BTC holdings to stablecoins, long-term investors see Bitcoin’s decline in price as an opportunity to increase their holdings in the top cryptocurrency.
They embarked on an accumulation spree, buying the dips from traders who could not withstand the massive decline in price.
The massive spike in Bitcoin’s volume, according to Merten, bodes well for the top cryptocurrency, as activity is usually followed by a surge in prices based on historical records.
Bitcoin Down 3% In 24 Hours
Bitcoin is yet to put a smile on the faces of investors. At press time, the asset class is down 3% in the last 24 hours, which puts its price at $29,300.
Meanwhile, Cardano founder Charles Hoskinson also shared the same sentiment earlier this month based on his previous experience with Bitcoin.
According to Hoskinson, Bitcoin’s decline in price is usually followed by a massive rally, as patient investors will be adequately rewarded for holding on to the crypto.