Crypto analyst Nicholas Merten says Bitcoin bulls are running out of time to continue BTC’s parabolic rally.
Merten told his following on YouTube that the leading cryptocurrency’s recent drop to about $8,400 is in line with previous weekly patterns, and to keep the trend intact traders must push the price higher over the weekend.
“No matter what, we do need to retrace down on the weekly pattern and close down some of the previous gains from the previous week. This has happened on most of the previous weeks, where the weekly candle retraced a good amount of the previous weekly gains and then we continued higher in that case…
So, we have gotten that so far. This could still reverse [and go higher]. The candle started on the 27th. We’re only on the 31st, so we’ve still got some time for this to move higher, but it’s gotta move quick as you can see here. The parabolic line is showing that.”
Merten says $8,100 is now a crucial line of support, and a breakdown below that number could send BTC in a free fall to $6,000.
“The other one that I would say to watch is if Bitcoin’s price breaks below $8,100 and again volume starts to pick up and ramp up. That’s where I’m going to get a little bit worried. Now I’m already out of my short-term positions, long-term I don’t touch. I think that we’re getting on pace though, and getting ready for the next few weeks to go down to $6,000 and that’s when I’m going to really average down on some of my long-term positions.”
Bitcoin is down 0.94% at $8,460 at time of publishing, according to COIN360. Ethereum is down 2.0% at $261.70, and XRP is down 1.98% at $0.4287.