dailyhodl.com
A closely followed crypto analyst says that Bitcoin (BTC) and Ethereum (ETH) are flashing signs of weakness despite their respective bounces over the past weeks.
In a new strategy session, DataDash host Nicholas Merten tells his 515,000 YouTube subscribers that’s he’s keeping a close watch on the stock market as it may signal what’s to come for Bitcoin and Ethereum.
According to Merten, the stock market’s recent outperformance of crypto assets could be a hint that Bitcoin’s recent rally doesn’t have much gas left in the tank.
“What is really telling here is how weak crypto has been in comparison to equities markets during this rebound. Equities markets have rebounded a whopping 30%…
And you would expect that as crypto sells off harder than equities during downtrends, crypto should rebound just as fast and harder to the upside versus equities. We are not seeing this here.
We have seen a month-long period of stagnation. While I don’t mean to speak too bearish here, I got to tell you all, this is starting to showcase some signs of weakness here where, we break below this ascending wedge here with slower growing highs and faster growing lows, it is putting bulls in a very bad position.”
Looking at Ethereum, the crypto analyst says that ETH is also putting in an underwhelming performance and still hasn’t shown any signs that the bear market is anywhere close to being over.
“Ethereum has been leading the way. The ETH to BTC ratio has continued to garner strength. Take a look here at Ethereum, still only really up about $240 over the past month. I know that that’s still a gain, a nice turn to the upside, a little over 10%…
It’s not bad, but it’s also not phenomenal. It’s not what I would expect here if we’re really going to get this inflection point…
ETH has made some considerable gains in what is very likely – although I don’t want to speak in absolutes – very likely a long-term extended bear market.”