Nearby crypto analysts are predicting an explosion for Bitcoin (BTC) and altcoins as they believe a recession and stock market decline are on the way.
In a new strategy session, DataDash host Nicholas Merton, says His 511,000 YouTube subscribers said bitcoin bulls are betting on a sustained rally after BTC’s breakout performance to start the year.
However, Merton says that crypto is likely at the end of its rally as he believes that the Federal Reserve will not create the conditions necessary to spark a new bull market.
“TeaA lot of their focus is betting on the bulls, which is the Fed [is] is going to save the day, everything will start to move up and down again and a new bull market will begin…
The Fed is not going to be able to encourage the kind of risk-on behavior that you see in a typical bull market, especially in alternative assets like altcoins which are certainly risky. This is not telling me that the markets are ready to sustain the uptrend in the long term. If anything, it’s telling me that we’re through a very bloated relief rally that is likely to subside in the weeks and months ahead.
Merton said that investors should expect an upcoming recession and be wary of the story of BTC rising to $1 million due to the economy crashing.
“The only narrative that people are excited about is AI (artificial intelligence), which has certainly made progress but is not seeing any gains anytime soon, specifically, burning capital over the next few years Going into a tight environment, with potential bearish over the next few months.
I really can’t make these bets… I know a lot of people can trap people saying, ‘Bitcoin going to $1 million, the system’s about to collapse…’
If you guys want a little risk, if you want to hedge your money, you should have a fractional risk. You don’t have to go all out on anything. If the whole system collapses you will still make huge profits and hedge yourself and protect your principal.”
Analysts also say that the US stock market is approaching a key resistance level, indicating that a significant correction may be in sight.
“Unfortunately, it doesn’t look good here folks. Since way back in January of 2022, around the same time we got the red flip on bitcoin, we can see that the red resistance band has been a really good gauge. When price starts getting close to this range inside the red band, it’s time to get ready to go short. We’re already relatively close to this band.”
Source: Nicolas Merton/YouTube
Bitcoin is trading at $28,015 at the time of writing, a partial gain on the day.
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source: dailyhodl.com