Popular crypto analyst Nicholas Merten says that the crypto market is going through a long-term consolidation, but the position of top traders indicates that there will be a reversal at the end of a “final flush.”
In a new strategy session, Merten tells his 496,000 YouTube subscribers that top traders are generally bullish and that the price of crypto assets will eventually go up once fear subsides.
According to the crypto fear and greed index, market sentiment went from “fear” in December to “extreme fear” this month, which could spell trouble for over-leveraged traders.
“Even though the bearish sentiment is still present in the market, it’s very clear by most of the leading indicators [that] we need to see the final flush.
We need people to be at a position where they’re either getting liquidated out of their positions or they’re flipping the coin, they’re down in their excessively-leveraged long position.”
The trader says that deep-pocketed investors will take advantage of the bear market to ramp up their holdings while traders who take short positions may face a liquidation of their assets.
“As everyone’s piling into the shorts, as the short positions build up on the spot market, whales who like to buy real fiscal Bitcoin are going to buy heavy.
They’re going to drive the price higher and cause even more pain liquidations for the emotional traders. That’s how it works.
Greener pastures rallies and prices are usually found in fear from emotional traders and investors. In the market, the emotional traders fuel the kind of price action that institutions like to buy.”
At time of writing, Bitcoin is down 5% on the day and losing the $40,000 support, currently trading at $39,673.12.
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Сурф Тхе Даили Ходл Мик
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Истакнута слика: Схуттерстоцк/продигитална уметност/Наталиа Сииатовскаиа
Source: https://dailyhodl.com/2022/01/21/crypto-market-needs-a-final-flush-before-the-bearish-trend-can-reverse-says-digital-asset-analyst-nicholas-merten/