Nicholas Merten explained why the first cryptocurrency – bitcoin – will continue to grow in the short term.
Experts’ opinions may not coincide with the position of the editorial board. We do not give investment advice, the material is published for introductory purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
Bitcoin currently is going through a phase of volume accumulation, according to a crypto expert
Trader Nicholas Merten argues that bitcoin is not in a bear market at the moment, but is going through a phase of volume accumulation. The analyst explained that every bear market has caused bitcoin’s value to fall more than 70% from its peak.
“There is a really interesting technical pattern being observed, and it is a signal that the bulls are in the lead. Don’t let the sideways consolidation we are in mislead you into thinking this is some kind of bear market. A rally is just around the corner,” Merten noted.
According to the trader, after a phase of accumulation of volumes bitcoin will return to explosive growth and by the end of the year its cost can exceed $200 thousand (growth by 376% from current levels). In this case, the capitalization of the first cryptocurrency will reach the mark of $4 trillion, noted Merten.
On February 14, bitcoin is trading at $42,200 and its capitalization is $800 billion, according to CoinGecko. On Feb. 10, the price of the first cryptocurrency reached the $45,800 mark for the first time in more than a one month.
Last week, legendary investor Bill Miller explained why he thinks bitcoin is insurance against financial disasters and financial crises. Miller compared the first cryptocurrency to an insurance policy which has no intrinsic value, but people still pay monthly premiums because they want to be protected against unforeseen situations.