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.

READ MORE:

Top 10 Biggest Crypto Stories of 2024

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