Analyst and trader Nicholas Merten has reservations about Bitcoin (BTC) despite the flagship crypto asset’s massive rally over the past week.
Merten tells his 511,000 YouTube subscribers that although the Bitcoin-to-Nasdaq stock index correlation looks bullish, the macro environment is unfavorable.
“I definitely have to say that this chart right here, the Bitcoin-to-Nasdaq, ratio is what has gotten me most excited. Seeing that we’ve been able to get above the 200-week and 200-day moving averages is definitely a really positive sign.
But as we saw here back on the last trading day, we faded a lot of those gains. I have to see that it can hold up here because, according to history, when we get up in this range [above $25,000], it doesn’t last here very long.
And we are in a macro environment that for a more risk-on asset like Bitcoin, where its onramps are being talked about in question when it comes to regulators shutting them down… we have the banking infrastructure around these assets crippling as we speak. Where is that liquidity going to come from?
I’m not saying retail volume and speculators and just general investors long-term hodlers can’t drive it up. But we haven’t even seen the typical correction of a typical crypto bear market.”
According to Merten, BTC is likely to be crushed by macroeconomic factors in the weeks ahead.
“I just don’t see how Bitcoin is going to do very well in this environment. And until we start seeing a more continued deviation of Bitcoin away from the Nasdaq where it’s continuing to lead, I can’t be too confident just yet.”
Bitcoin is trading at $26,665 at time of writing, up by about 35% since March 10th.
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