Bitcoin (BTC) Facing Massive Headwinds Despite Ongoing Rally, Crypto Analyst Nicholas Merten Warns – Here’s Why

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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 while the Bitcoin-Nasdaq stock index correlation looks bullish, the macro environment is unfavorable.

“I absolutely have to say that this chart here, the Bitcoin-Nasdaq ratio, is what excited me the most. Seeing that we were able to break above the 200-week and 200-day moving averages is definitely a very positive sign.

But as we saw here on the last trading day, we wiped out a lot of those gains. I have to see that it can hold here because, according to history, when you go up in this range [above $25,000]It doesn’t last very long here.

And we’re in a macro environment that for a riskier asset like bitcoin where its on-ramps are challenged when it comes to shutting them down by regulators…we have the banking infrastructure around those assets crippling as we speak. Where will this liquidity come from?

I’m not saying retail volume and speculators and just general long-term investors 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 coming weeks.

“I just don’t see how Bitcoin is going to do very well in this environment. And until we start to see a more continuous deviation of Bitcoin away from the Nasdaq where it continues to lead, I can’t be too confident just yet.

Bitcoin is trading at $26,665 at the time of writing, up around 35% since March 10.

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