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Despite the predominantly negative indicators of bitcoin (BTC), a popular cryptanalyst believes that soon the situation with the world’s largest cryptocurrency by market capitalization will change dramatically and for a long time.
Popular cryptocurrency analyst Nicholas Merten reported on his YouTube channel that recently the top asset was marked by the achievement of an indicator that was historically accompanied by a surge in price.
According to Merten, who has more than 500,000 subscribers on YouTube, the recent collapse in bitcoin prices has opened up opportunities for many traders, which has led to a surge in trading volume.
Merten said that the growth in bitcoin trading volume was used as an indicator to determine the trend reversal. Notably, the recent increase in BTC trading volume coincided with events that occurred in March 2020 and May 2021.
According to Merten, regardless of what crypto traders think about bitcoin, this asset is ready for an imminent inevitable rally that will help patient holders recover the losses they have suffered over the past few weeks.
Here and now, there is a decent probability that we will see not a continuation of the decline, but a serious price rally that will recover most of the losses.
This market is governed by leverage. Many major movements up and down are caused by long-term players in the market who are taking on a little more risk than they should.
This leads to increased price growth, market recovery and new all-time highs, but it also played a role in the sharp 50% corrections that we have seen throughout this cycle and many times before it,” Merten said.
For many, it is no longer news that the collapse of the Terra ecosystem token has dealt a blow to the entire cryptocurrency market. Bitcoin, which was a few dollars from the $40,000 mark, fell below $27,000 last week, causing a general capitulation.
While many traders converted their BTC assets into stablecoins, long-term investors saw the decline in the price of bitcoin as an opportunity to increase their stake in the top cryptocurrency.
As a result, they began active accumulation, buying on a drawdown from traders who could not withstand a strong drop in price.
According to Merten, a massive surge in bitcoin trading volume bodes well for the main cryptocurrency, since, as history shows, such activity is usually followed by a rise in prices.
At the moment, bitcoin has not yet pleased investors with a sharp rise in price, trading around $ 29,500.
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