Since the beginning of the year, bitcoin (BTC) has already climbed more than 56%, giving hope to many in the crypto community about the recovery of the market. But analysts remain adamant. This recovery, although interesting, in the price of BTC is temporary. They are warning the gullible not to buy the flagship crypto now, because there is every reason to expect the bear market to continue.
The beginnings of a new bear market for bitcoin (BTC)?
Admittedly, bitcoin (BTC) has climbed enormously since the beginning of January, but it would be dangerous to believe that this rally in the price of BTC will be permanent. This is what crypto analyst Nicholas Merten says in a video posted on his YouTube channel on February 10. According to him, after the rally of BTC from its lows, the queen of cryptos is probably reversing the trend of its price, which is so far bullish. He explains that everything suggests that we are on the verge of a price reversal.
“There is the observation that we have made of a stagnation in the momentum of the price since the end of January (…) We saw the leading indicator that we use for trend reversals flashing, indicating that it is likely that the market is moving lower (…) We have already started to get warning signs that the momentum has stalled and a trend reversal is probably in the works (…) I think we let’s see clear signs that this is not the start of another bull market”does he have declared.
The repression of actors in the sector
Besides the technicals, Nicholas Merten says the ongoing crackdown on staking is a strong indicator to gauge whether or not the bull market will continue. Indeed, in their efforts to tighten the screws in the crypto industry, US regulators have more and more exchanges and various service providers in their sights.
Last week we learned that they are targeting players like kraken and potentially Coinbase. Services like staking should also be scrapped, observers say.
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