Bitcoin Faces Potential Plunge Below $80K, Analyst Warns of Altcoin Impact

The DataDash YouTube chanel has shared a cautious outlook for Bitcoin, suggesting that the leading cryptocurrency might face a significant downturn in the near future.

Nicholas Merten, the crypto expert behind the channel, expressed concerns that Bitcoin’s current price activity—hovering around $94,000—indicates the potential for a sharp decline within the next two weeks. He highlighted broader warning signs, such as weakening altcoin performance and troubling economic indicators, which he believes point to a looming downturn.

A key focus of his analysis is the 21-day exponential moving average (EMA). Merten pointed out that this metric, which previously served as a support level for Bitcoin, now appears to be acting as resistance. This shift has led him to forecast that Bitcoin could dip below the $80,000 threshold.

Merten outlined his expectations for where Bitcoin might find support, explaining that the next critical levels to watch are the 100-day EMA, positioned near $85,000, and the 200-day EMA, which sits closer to $76,000. Should Bitcoin fail to hold at the higher level, he predicts a more severe drop to the lower EMA.

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He also warned of the ripple effect this could have on altcoins, describing the potential for a 25% to 30% market-wide pullback. While Merten emphasized that such a correction wouldn’t spell disaster for the crypto market, he acknowledged that it could result in significant challenges, particularly for altcoin investors.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.