Bitcoin (BTC) has come under intense selling pressure, with crypto analyst Nicholas Merten, known as the host of DataDash, predicting a significant downward leg for the leading cryptocurrency. In a recent strategy session, Merten expressed concerns that BTC is primed for a bearish move.
Merten’s analysis revolves around the persistent resistance that Bitcoin has encountered at a critical channel.
“The question here is whether or not we’re going to be able to clear through this channel of resistance, which each and every time has proven as resistance for Bitcoin,” the analyst said. He emphasized that this recurrent resistance could pave the way for a substantial downward move.
Bitcoin Faces Strong Selling Pressure
Merten believes that Bitcoin may face even greater challenges than in previous instances when it reached this resistance level:
“It’s why we do believe that we are very well setting up as we enter into the channel resistance for another third wave to the downside that will probably hit harder than any of the prior resistance that we faced in the past at this range because the more times we come up [to] this range, and we can’t clear through it, that’s going to be a problem.”
While there is potential for BTC bulls to make a case if Bitcoin manages to break through the resistance zone, Merten remains skeptical. He sees the approval of a spot market BTC exchange-traded fund (ETF) as a critical factor for such a breakthrough.
Shifting focus to the foreign exchange market, the EUR/USD pair is making efforts to recover and breach the 1.0550 resistance level. However, it currently faces a struggle to rise above 1.0600 resistance and the 200 simple moving average.
On the 4-hour chart, a key contracting triangle is forming, with resistance near 1.0600. A break above this resistance could potentially propel the pair toward the 1.0640 resistance level.
BTCUSD currently trading at $30,709. Chart: TradingvVew.com
Spot ETF Applications Bring Optimism Amidst Bitcoin Uncertainty
In the cryptocurrency realm, enthusiasm is growing for a particular spot market ETF application, which has garnered more attention than several similar applications recently submitted. Notably, on October 16, false reports of Blackrock ETF approval briefly boosted Bitcoin’s price above $30,000, underlining the heightened interest surrounding ETFs.
Although this news proved to be inaccurate, it reflects a shift in attitude and sentiment towards crypto assets, with increased focus on institutional participation. Blackrock’s strong track record with previous ETFs continues to fuel optimism in the crypto market.
As of the latest update, Bitcoin’s price on CoinGecko stands at $30,647, reflecting a 2.3% gain in the past 24 hours and a seven-day rally of 10.4%.
Featured image from Sam Whitney/Getty Images
