Analyst Issues Warning Of A Possible Major Problem For BTC
Nicholas Merten, DataDash’s host, and crypto analyst informs his 512,000 subscribers on YouTube in a strategy session that the Mt. Gox debacle (dormant sell-side demand) may resurface and potentially trigger a further price dip for the leading digital asset, BTC.
Merten says, “There’s a question we must raise concerning the probability that the Mt. Gox trust will lead to another dip in BTC’s price. Alternatively, the more specific question is, what’s the likelihood that the anticipated unloading of all these BTC back to their initial holders will occur because of the demand from these holders to access their BTC assets?”
A Source Of Intense Selling Pressure
The crypto analyst further said, “another question we should ask is whether the effects of the sell-off will be low, which was what happened in the previous bull market, [the BTC of Mt. Gox] holdings did not even reduce by half. What does this offloading BTC into consumption inside the marketplace imply for the price?”
Mt. Gox was an abandoned cryptocurrency exchange headquartered in Japan. After being compromised, it declared bankruptcy in 2014. It was later announced in July 2022 that it would pay back its former users as part of its bankruptcy process.
According to Merten, the compensation of BTC to Mt. Gox’s past customers could represent a huge source of sell-off. Furthermore, he says, “I believe this means that there will be a ruthless quantity of sell-side tension.”
“Folks who had BTC when it became double to triple digits and was worth a couple of dozen dollars to a couple 100 dollars will desire to start taking profits since they now believe BTC as a crypto asset is doomed,” he added.
At the time of posting, BTC trades at $17,384 and is up by 2.7% in the last 24 hours per current Coingecko data.
Ethereum (ETH) May Face Another Dip – Merten
A few days back, Merten predicted that Ethereum would fall further while numerous other altcoins might also shed a huge portion of their value. The crypto analyst added that ETH is in a downward trend, and the price at its 200-week exponential moving average acts as resistance.
“Although the Ethereum-to-Bitcoin ratio indicates that ETH has been relatively neutral in its position since May 2021 compared to BTC, Ethereum is still in a downward trend.” He cautions that a short rescue rally isn’t sustainable except if Ethereum rises well above the 200-week exponential moving average but also begins to trade at 15% to 30% of its present value, somewhere around $1,470 to $1,668.
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