In the past weeks, cryptocurrency investors worldwide witnessed a negative performance in Bitcoin (BTC) and other crypto coins. However, a famous cryptocurrency analyst believes that the top crypto coin, BTC, will soon get back to a positive place in the market.
According to Nicholas Merten, a famous crypto expert on his YouTube channel, Bitcoin has recently flashed a historical indicator, always accompanied by a surge in price.
While speaking to his over 500,000 subscribers on YouTube, he noted that the top digital coin’s recent price crash had created an opportunity for many traders, thus prompting a surge in the asset’s trading volume.
Recent Indicators Shows Bitcoin Will Rise
Merten also noted that Bitcoin’s surge in trade volume represents an indicator to determine trend reversals. Notably, the recent spike in Bitcoin volume is similar to events recorded in March 2020 and May 2021, respectively.
The crypto expert believes that Bitcoin is set for an imminent rally soon, which will help patient holders recover the losses they have incurred over the past few weeks.
“Right here right now, it’s much more likely than not that we’re going to see a significant rally in price, recovering a lot of the losses, rather than continuing to the downside.
This market is driven by credit. It is driven by leverage. So a lot of the major moves upward and downward are caused by long-term players in the market who are taking on a little too much risk than they should.
That has led to the exacerbated rallies in price, recoveries in the market, and all the new all-time highs that we’ve set, but it also played a role in the sharp 50% corrections that we’ve seen throughout this cycle many times before.” Merten said.
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Bitcoin’s Drop in the Crypto Market
The Terra ecosystem catastrophic collapse negatively affected the cryptocurrency market in general. The market doom particularly hit Bitcoin as it fell below $27,000 from close to $40,000 in the past weeks.
However, long-term investors have seen an opportunity while other traders take the easy way out by converting their BTC coins to stablecoins. Bitcoin’s drop in price is a chance for holders to increase their stock in the top cryptocurrency, resulting in an accumulation exercise by buying the dip from traders looking to dispose of it while they can.
Merten also noted that Bitcoin’s volume had experienced a massive spike which is a good sign for the top asset class, leading to an increase in prices based on records.
Bitcoin Falls by 3% In 24 Hours
Currently, the top cryptocurrency is down 3% in the last 24 hours, which puts its price at $29,300.
Meanwhile, Cardano founder Charles Hoskinson shared the same opinion earlier this month based on his previous experience with Bitcoin.
According to Hoskinson, Bitcoin’s decline in price is usually followed by a massive rally, as patient investors will earn rewards for holding on to the crypto.
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