According to KOL Nicholas Merten, the market needs one last sell off before a bullish trend reversal
According to renowned analyst Nicholas Merten, the market is in a long-term consolidation, but top traders’ positions point to a reversal at the end of the “final sell-off”.
In a new strategy session, Merten to speak that top traders are generally optimistic and that cryptocurrency prices will eventually rise as fear subsides.
Source: Nicholas Merten
According to the Crypto Fear and Greed Index, market sentiment has gone from “fear” in December to “extreme fear” this month, which could spell trouble for traders using too much leverage.
“While bearish sentiment still prevails in the market, it’s clear that most of the leading indicators we need are giving definitive sell-off signals.
People are either being liquidated from their positions or taking a big bite, they are stuck in a long position and using too much leverage.”
Trader says investors with deep pockets will use the bear market to increase their holdings, while traders who are buying short positions may be liquidated.
“As people rush to short positions, short positions in the spot market are increasing and people who love to buy Bitcoin will be actively buying.
They will drive up the price and cause even more liquidations for sentimental traders. That’s how it works.
Rallies often occur when investors and sentimental traders are fearful. In the market, sentiment traders drive the kind of price action that institutions love to buy.”
At the time of writing, Bitcoin is down 11% on the day and is losing support at $40,000, currently trading at $36,410.
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According to KOL Nicholas Merten, the market needs one last sell off before a bullish trend reversal
According to renowned analyst Nicholas Merten, the market is in a long-term consolidation, but top traders’ positions point to a reversal at the end of the “final sell-off”.
In a new strategy session, Merten to speak that top traders are generally optimistic and that cryptocurrency prices will eventually rise as fear subsides.
Source: Nicholas Merten
According to the Crypto Fear and Greed Index, market sentiment has gone from “fear” in December to “extreme fear” this month, which could spell trouble for traders using too much leverage.
“While bearish sentiment still prevails in the market, it’s clear that most of the leading indicators we need are giving definitive sell-off signals.
People are either being liquidated from their positions or taking a big bite, they are stuck in a long position and using too much leverage.”
Trader says investors with deep pockets will use the bear market to increase their holdings, while traders who are buying short positions may be liquidated.
“As people rush to short positions, short positions in the spot market are increasing and people who love to buy Bitcoin will be actively buying.
They will drive up the price and cause even more liquidations for sentimental traders. That’s how it works.
Rallies often occur when investors and sentimental traders are fearful. In the market, sentiment traders drive the kind of price action that institutions love to buy.”
At the time of writing, Bitcoin is down 11% on the day and is losing support at $40,000, currently trading at $36,410.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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