Bitcoin has regained some ground after two days of price declines, and now trades at roughly $36,000. Terra, Avalanche, Shiba Inu, and a slew of other altcoins have seen significant double-digit price increases. However, it is still below the level of $38K, the level that it has broken down for the first time in over four months.
While most people would like to believe that this is just a blip on the radar that will pass quickly, analyst Nicholas Merten has advised investors to expect even greater volatility.
Merten revealed some doomsday predictions about bitcoin in a recent video on his YouTube channel. The expert begins by acknowledging what most investors have seen in the market, believing that the current bounce is a harbinger of greater gains to come. However, this could not have been more incorrect, since the digital asset has now experienced even more losses.
Merten pointed out that the gains made when bitcoin soared from $41k to $44k have faded rapidly, and that there aren’t many strong support ranges as bitcoin continues to fall with the decline.
BTC to stoop low 30% more
He forecasts a period of extreme volatility, with the price falling to levels not seen in almost a year. When comparing the current market to that of May 2020, the price would drop to around $29,000. it’s just likely at this point that we’ll see something similar to what we experienced in May, he said.
By bringing the correction down to the $29,000 to $30,000 range we’re pushing them closer to what he calls maximum discomfort. It simply denotes the point at which everyone, including bulls, believes we’re in a bear market, he added.
Analysts foresee another fall of 20% to 30%, putting the price of bitcoin in the range he predicts.
At the time of writing, Bitcoin is trading at $35,717 up by 0.3% in the last 24 hours. The resistance on the upside is at $38,000 and the support is at $34,400.