This article was originally published here.
The biggest crypto analyst on YouTube says he believes the recent drop in the price of Bitcoin will continue.
Nicholas Merten (aka DataDash) says he expects a 40% correction in the recent parabolic rise of BTC, bringing the price to about $5,000 in the weeks ahead.
“This is a very key level because once we got up above $5,000 as we were setting up higher levels, we continuously tested this level. And that’s exactly what we did back here [in late 2015]. Again, you can see, before we entered a big bulk of that fast moving price action, going vertical in a sense, we had a test on that level. We tested it multiple times after we came back down. So the least I would expect is that we could come back down to that $5,000 level and test it multiple times. As we’ve seen this kind of parabolic rise in price action, this would line up perfectly with previous lows. So as we go into the end of May and into early June, I would expect we’re going to come down here into this range and hold…
I can tell you all, anywhere between $5,000 and $5,500, I’m buying. I’m averaging down. I’m getting ready to prepare for this market run-up. But I’m going to have to see price come down to a lower level. NVT, RSI, everything is telling me it’s too overbought personally. As much as I love the cryptocurrency space, as much as I love Bitcoin, and I know it could be worth $1 million one day most likely, in the short term this is too much for me.”
Right now, Bitcoin is down 11.08% at $7,105 according to Coin360, posting a steep decline since Wednesday, May 15 when BTC was trading at $8,300. The downturn has dragged the altcoins into double-digit negative territory. Ethereum is down 15.55% at $230.47, and XRP is down 13.18% at $0.3723.
Technical analysts are watching Bitcoin bulls as they attempt to hold the line above the psychological barrier of $7,000.
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