Bitcoin (BTC) Hits Breaking Point Ahead of Major Capitulation, Says Crypto Analyst Nicholas Merten

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Crypto analyst Nicholas Merten warns that Bitcoin (BTC) is inches away from a “breaking point” that could trigger a major capitulation event.

In a new video update, Merten tells his 511,000 YouTube subscribers that what was historically a buy-the-dip support level for Bitcoin is now disintegrating.

The fact that we’re well suspended and not even coming back to retest those 200 days (moving average), as well as the 200 weeks [moving average]is a big worrying sign here.

And when we zoom out here, you can start to see what I mean here, because the 200 weeks was usually a “buy the dip” opportunity for Bitcoin. It now acts as resistance alongside the 200 day cross below those 200 weeks. So it’s already a big problem here.

Merten predicts a scenario where BTC briefly rallies around $18,000 before turning around and triggering a capitulation event that takes the flagship crypto asset to new lows near $13,000.

With bitcoin I want to highlight our breakout point here which is if we really break below the previous lows and this sloping resistance line if we can’t hold this descending line of previous resistance it’s going to be a major warning sign.

Basically speaking, if we see the price even if it is rising here towards the previous resistance range or the previous support range at around $18,000 and we zigzag below here to break below those previous lows [of about $15,400] it is your harbinger of a major surrender.

Source: Data Dashboard/YouTube

At the time of writing, Bitcoin is changing hands at $16,804.

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