In a recent video on the DataDash channel, a crypto analyst cautioned investors to sell their bitcoin as the cryptocurrency market seems to be overbought.
The analyst, Nicholas Merten, argued that BTC has experienced an increase of nearly 100% since November 2022 and is likely to face a resistance level between $29,000 and $32,000.
Merten believes that waiting for signals is crucial before investing in BTC, especially since the crypto market appears to be entering the support zone formed during the previous cycle.
He thinks that Bitcoin’s recent surge could be a trap and advised subscribers to go short.
Unlike some who believe that BTC will follow the 2019 scenario, Merten disagrees.
Four years ago, BTC showed a 300% increase in a few months, but he believes that such a hyperbolically fast recovery is unlikely to happen again.
He argues that it’s more important to talk about percentages, and at the moment, BTC has only shown a 100% movement.
Merten warned that the current bull laxity in the market could occur during a bear market, and he predicts that BTC will most likely follow the same scenario as in June 2021 when it reached its historical maximum and then collapsed.
It’s important to note that over the past week, the BTC rate has added about 10% of the cost.
Therefore, investors should take caution and evaluate their investment decisions carefully, keeping in mind the market’s volatility and fluctuations.