Anyone who expects the cryptocurrency market to fall further could be wrong, as the price of Bitcoin (BTC) and Ethereum (ETH) are set to rise by more than 20% and shoot down the bears, as the cryptocurrency analyst points out Nicholas Merten.
According to Merten, ETH is not entering a bear market despite being in a downtrend for nearly nine weeks. He points out that technical data suggests that ETH is just in a mid-cycle correction of an extended bull market.
“Right now what we’re seeing is probably another mid-cycle correction, as well as the even heavier one we had in May 2021 – [uma] 60% correction in 13 days. That wasn’t the bear market [e essa correção] it was much worse than the new correction we are going through right now.”
Merten highlights that the implementation of constant burning of ETH will significantly reduce selling pressure in 2022 and will act as a catalyst for a new high.
“Ethereum, unlike Bitcoin, which has a fixed supply of 21 million coins, will have the ability to be a deflationary asset, meaning that its supply will actually burn out over time and decrease. This is now possible due to two major dynamics that happened in 2021, and this has to do with the ETH2 staking contract as well as [a atualização London].”, he said.
For the analyst a bear market will only be evident when a euphoric and explosive scenario occurs, which he says is nowhere to be found.
“With all these dynamics that are contracting supply, more and more for ETH, and with the general interest of investors in ETH versus bear… how can we possibly be entering a bear market?”, he concluded.
Ethereum is not down
In the same vein as Merten, the cryptocurrency analyst known as Credible Crypto, highlights that ETH looks poised for a new rally as it exhibits several positive signs.
“My target region of $3,000 to $3,300 has been hit and now we are seeing signs of relief coming. Upside probability from current levels is higher than downside in my opinion. Aiming at $3,500 (detailing retest) for now,” he said.
My target region of $3000-$3300 was hit and we are now seeing signs of relief incoming. Multiple bullish divs on lower TF on both the USD and BTC pairings. Probability for upside from current levels is higher than downside imo. Targeting $3500 (retest of breakdown) for now. $ETH https://t.co/6FsoHAIMpT pic.twitter.com/QYB1OZbWY1
— Credible Crypto (@CredibleCrypto) January 11, 2022
The same analyst optimism with Ethereum is being reflected in Bitcoin, with expert Justin Bennett pointing out that the bulls are trying to hold support around the $40,000 area and that this is very positive as it indicates that after a series of lows, BTC should experience a relief rally.
“BTC has a habit of dropping 4% to 8% below liquidation wicks [vela de 4 de dezembro] before jumping. It has occurred five times since the start of 2021, excluding the fourth December candle. Today’s low is 5.7% below the settlement low of $42,000. Leap time.”
On December 4, Bitcoin dropped as much as 22% of its value in a single day, from around $53,000 to $42,000, before buyers stepped in and pushed BTC to $49,152, leaving a large wick below the market. daily candle body.
So looking at this case, and with Bitcoin filling the December Fourth sell-off candle, Bennett says in a new YouTube video that he sees BTC rising above the $50,000 level.
“I like the idea of a jump between $38,000 and $40,000. Let’s talk about goals. If we get that jump, from $40,000 or more or down to $35,000. Now if you look at all the times Bitcoin has done this since the beginning of 2021, the average bounce after a liquidation event and then move below the minimum, every time this is done, the average bounce is about 63%. So, averaging 63%, we could very well see Bitcoin go back to not just $45,000, but $53,000.”
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