A widely followed crypto analyst reveals critical trends in the altcoin cycle this year but notes that there may be a pullback first.
Will the BTC Price Pull Back From $49K to $40K?
In a new video update, Nicholas Merten, the host of DataDash, tells his 511,000 YouTube subscribers that key indicators suggest a steep correction in Bitcoin after the ETF launch, acknowledging the pullback from 49k to 40k. Despite concerns, he highlighted Bitcoin’s resilience, emphasizing that the post-ETF launch has gone well regarding price action.
Merten suggested that, even if there’s a chance of a pullback to the 100 or 200-day moving averages, Bitcoin’s ability to hold up signals a more mature trajectory, potentially less volatile than in the past.
“He’s happy with how well his Bitcoin predictions for 2023 played out. He’s surprised by the market’s strength. Looking ahead to 2024, expects a small drop of about 15% soon, which he sees as a normal correction, especially as the stock market reaches higher points.”
Changing Altcoin Dynamics, A Make or Break Event?
His analysis focused significantly on the changing dynamics in the altcoin market. Merten pointed out a notable trend of large-cap cryptocurrencies like Ethereum, BNB, and XRP facing continued weakness. He emphasized recognizing a “Changing of the Guard,” where smaller altcoins outperform, making multi-hundred percentage return moves. He further cautioned against traditional large-cap plays, suggesting a shift towards smaller, innovative projects with higher growth potential.
Merten also challenged the current sentiment that large-cap cryptocurrencies lack exciting applications and innovation. He urged his viewers to look beyond the mainstream and explore smaller projects addressing real-world problems. He emphasizes the need for a shift in focus toward projects providing new solutions and applications rather than relying on brand names.