Bitcoin Breaks $37,000, Why Downtrend To $29,000 Is Likely

Bitcoin has now broken down past $38,000 for the first time in over four months. This is a crucial point for the digital asset given that it has successfully maintained its position above this level throughout all of the crashes and dips of the previous month. While most would like to think that this is only a temporary setback that will soon be resolved, analyst Nicholas Merten has warned investors to brace for even more volatility.

Prepare For Further Downside

In a recent video on his YouTube channel, Merten shared with his over 87K subscribers some gloomy analysis surrounding bitcoin. The analyst starts out by acknowledging what most have experienced in the market, believing that the recent rebound was a telltale sign of more upside to come. However, this could not have been more wrong as the digital asset has suffered even more dips following that.

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Merten pointed out the fact that the gains realized from when bitcoin jumped from $41k to $44k have quickly faded and that there is not a lot of significant support ranges as the digital asset makes its way down with the downtrend.

He predicts some major volatility that will drag the price down to levels not seen in about a year. Comparing the market to that of May 2020, which would see the price fall to the $29,000 range. “It’s just likely at this point that we repeat what we saw back in May to some degree,” he said. “Having a correction down to this range [$29,000 to $30,000], getting people towards what I would define as max pain It basically defines the point of peak fear when everyone, even the bulls are convinced that we’re in a bear market.”

The analysts expect more downside to the tune of 20% to 30%, which would put the price of bitcoin at the range he predicts.

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Bitcoin price chart from

BTC crumbles below $37k for first time in four months | Source: BTCUSD on

Still Bullish On Bitcoin

The fact that Merten relayed such a gloomy diagnosis for bitcoin in the short term does not mean that the analyst is particularly bearish in the long term. He explained that despite the market showing bearish trends, he remains a bitcoin bull.

“We’ve been bearish in the short term over the past couple of weeks and we believe that there is still more downside to go, [but] I’m still a long-term bull.”

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Additionally, Merten reiterates the fact that the market is still in a bull trend. Usually when prices start declining as fast as they are now, panic spreads across the space as most believe the bull market is over. For Mertern, this is not the case. He explains that just as a downward correction is likely, bitcoin could very well switch up and head towards the $150K to $200K range.

“I believe that we’re still in a bull market, not a bear market. It’s very likely that we could see this correction, but at the same time, it could be the catalyst to finally set ourselves up on the next uptrend and charter towards the $150k range, $200k range for Bitcoin.”

At the time of writing, bitcoin’s price is down 9.61% to be trading at $37,945.

Featured image from Medium, chart from


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Why Closing Out The Year Below $50,000 Could Be Bad For Bitcoin

A lot of predictions had put the price of bitcoin at $100,000 by the end of the year and although there are still some weeks left to go, it does not look like these predictions will come to pass. Bitcoin has however maintained a bullish trend despite price crashes and massive liquidations rocking the digital asset in recent times.

Since analysts, and the crypto market in general, has been so focused on the bullish future of the asset, there has not been much attention paid to a low for the year. As the end of 2021 rolls around, it is important to not only look at the bullish end-of-year predictions but also how the cryptocurrency might be affected depending on the price bitcoin closes at.

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Crypto analyst Justin Bennett addresses this in his latest issue of the weekly newsletter. Bennett maps out the outlook for the digital asset, as well as the implications of bitcoin closing out the year below $50,000.

Options Contracts Becoming Worthless

Some of the bitcoin options contracts are set to expire at the end of the year and the profitability of these options contracts depend greatly on what price BTC is when they expire. Since the crash, bitcoin has struggled to maintain its value above $50,000 and this has not been good for the options contracts. Bennett notes that a close below $50,000 would see all of these contracts expire worthless, playing into what he called the “max pain theory”.

The crypto analyst is not particularly confident in the digital asset’s ability to finish the year above $50,000. He expressed that he expects the consolidation in larger cap cryptocurrencies to continue through the last month of the year.

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Bennett however notes that there is a wide range for bitcoin due to the December 4th candle. This means that anywhere between $42,000 and $53,000 is possible going forward, providing a massive margin for the digital asset.

Bitcoin price chart from

BTC price continues downtrend | Source: BTCUSD on

Bitcoin Volume Is Concerning

Bennett also points to the lack of volume in the cryptocurrency. One thing is to start a rally or a breakout, but the other thing is to get enough volume to match that breakout. Otherwise, a rally would not be successful.

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“If we’re to see Bitcoin and the rest of the crypto market breakout later this month or even January, we need to see volume to match the price increase,” said Bennett. “Without volume, any rally or even breakout is more likely to fail.”

As bitcoin continues to consolidate following a $53,000 test, the market is quietly waiting for more institutional money to pump into the market. Currently, Bennett has put the bitcoin key support at $49,000. “Below that is the April trend line near $46,000,” Bennett notes.

Featured image from Bitcoin News, chart from


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Bitcoin (BTC) $ 26,586.12 2.00%
Ethereum (ETH) $ 1,583.90 2.66%
Litecoin (LTC) $ 64.55 0.02%
Bitcoin Cash (BCH) $ 208.04 2.94%