Nicholas Merten of DataDash believes that more market participants are looking to sell BTC rather than buy it, leading to a downward trend in the price of the king of cryptocurrencies. Merten explained the situation with Bitcoin as follows:
We have continued to experience stagnation around the $30,000 level, and each passing week proves that this is a distribution range rather than a demand-side range for price. Essentially, there are more people who want to unload their positions rather than take new ones, and this market dynamic is causing selling pressure, resulting in a stagnation of prices, much like we saw in April.
According to the analyst, if Bitcoin closes the week below the $30,000 support level, it will confirm the imminent arrival of another drop for the crypto king. The analyst stated the following regarding the expectation of a drop:
If we close this week just a few hundred dollars below the current level that Bitcoin is at, then we will have confirmed the expected drop and have given ourselves a wide opportunity to start shorting Bitcoin with about two weeks of red candles confirmed. The key here is not to catch absolute bottoms or tops; it’s about waiting for and catching vital signs that show the trend is ready to reverse in either direction.
It’s not just Bitcoin at stake here, and I’m not talking about worsening in the cryptocurrency market. My goal is to explain what’s happening on a macro perspective because asset markets are not ready to start a new bull run, and therefore, caution is warranted. Unfortunately, the weakness shown by the bulls in the past few months is significant evidence that we are ready to move downwards.
The largest cryptocurrency, which climbed back above $30,000 on August 8th, dropped below this level again due to the lack of expected support. Bitcoin is currently trading just below $30,000, at $29,752, representing a 1.77% increase in the last 24 hours. For the analyst’s prediction to come true, BTC needs to close the week, specifically the candle closing at 02:59 on August 14th, below $30,000.