This article was originally published here.
YouTube’s biggest crypto analyst says he believes Bitcoin will rally to around $6,000 before the next significant dip. Nicholas Merten (aka DataDash) told his 313,000 subscribers he’s bullish in the short term, largely because recent sell side volume for BTC has not matched the buy side activity that brought BTC above $5,000 early this month.
“What I like is, even though we did have a pretty sharp sell-off here, we can see that as much as it was a pretty steady amount of sell side action in the sense of price, volume at least on liquid exchanges like Coinbase, Bitstamp, Gemini, you name it, was nowhere near the buy side activity that we had these two days. So it’s really good to see that the market isn’t breaking through that even level. We were actually able to come back up and the actual close was above $5,000 and we’ve continued to regain some of those losses.”
Merten says he believes continued speculation could bring BTC to $6,000 in two weeks or less.
“What’s the time frame for going to $6,000?… I think it could be by the end of this month. With the kind of momentum that’s come in – the fact that we’re holding $5,000, this serious level of gains. And we’re not even coming down to retest on the 200-day. This tells me two things. It tells me that there’s short-term confidence. There’s short-term risk taking. But at the same time, this is going to get over exhausted. We’re making support roughly, if you can take a look at the RSI, we’re basically making support on the overbought range. And to me, that tells me in the short term there’s going to be continued speculation.”
Because of Bitcoin’s extended bounce off of the psychological barrier of $6,000 across most of 2018, Merten says that line will be extremely difficult for bulls to bust through in the short term. Merten is betting on Bitcoin dipping to a third higher low in the next month or two.
“I don’t think we’re going to have enough substantial risk taking, especially with not only how fast this rally has been but also with where we are fundamentally in markets, to climb above $6,000. I know a lot of people want that, I just honestly don’t see it happening…
As we all know, previous resistance tends to become new support, and previous support tends to become new resistance. That was a year’s worth of support, which is not good news for the bulls. It’s going to be very difficult to test past this range. So I think we’re going to get up to around $5,800, $6,000, and then we’re going to come back down and set a third higher low, possibly in this case somewhere around $3,700 to $3,800, sometime in May or June in this case.
Again, no matter what, I’m looking for it to come down to the support line or hold on previous resistance. I’ll be optimal towards the idea of buying here as well, if we come back down to even this support line around $4,200.”
Right now, the crypto markets are mostly in the red. Bitcoin is down 0.81% at $5,074. Ethereum is down 4.88% at $155, and XRP is down 1.49% at $0.3222.
CoinDesk technical analyst Omkar Godbole says Bitcoin’s 14-day RSI indicates BTC is extremely overbought, and suggests a pullback to $4,912, and then $4,527 could be in play.
At large, analysts charting Bitcoin, Ethereum, XRP and Litecoin are at a crossroads on where the market will head next.
Blockonomi – ETH likely to face a strong resistance near $173.50
FXStreet – ETH/USD stays above 100 SMA
Live Bitcoin News – XRP signaling bullish break above $0.3500
Ethereum World News – Next bullish leg for Litecoin underway