Warren Buffet sells stocks, a bearish signal for Bitcoin?

Nicholas Merten, the widely followed crypto analyst, recently sounded the alarm when he said the stock selloff by investing legend Warren Buffett does not bode well for financial markets, including Bitcoin. According to him, the current cryptocurrency rally is sorely lacking in price patterns to support a short-term uptrend, which makes a significant price rally unlikely.

Buffett’s stock selloff is a bearish signal for financial markets, DataDash says

The price of Bitcoin is currently in a phase of stagnation and cannot exceed the 30,000 dollar mark. However, this situation could get even more complicated.

Indeed, Nicholas Merten, a cryptocurrency analyst well known for his DataDash show, warns that the recent massive sale of shares by Warren Buffett is a bearish signal for the financial markets.

In a news videoMerten explains that the sale of billions of dollars worth of stocks suggests that the bull market could lose strength, and that the current Bitcoin rally lacks price patterns to support a short-term uptrend.

According to Merten, there is nothing in the short term that could stimulate a rise in bitcoin prices. He points out that the US banking crisis did not lead to a massive stampede for the queen of cryptos as some had expected. Instead, the price of cryptocurrency is relatively unstable and falling.

Look what the price is doing now. It looks relatively jerky, incoherent. Certainly not a bitcoin bank, because everyone is selling us. So if there isn’t a major race towards bitcoin during this time when people are switching to different banks, chasing better returns, losing a bit of faith in the financial system, during this prime time for bitcoin is potentially that asset and we don’t see it in the price, what will the story be? What will drive the price of Bitcoin up? »

Buffett’s stock dump is yet another sign that markets aren’t headed for a near-term uptrend. Buffett, who typically buys at the start of a new cycle, is selling billions of shares of Berkshire Hathaway, his company. This sell-off in stocks suggests the investment legend doesn’t believe in a trend reversal anytime soon.

For Merten, there are few new narratives that could actually support a long-term uptrend for bitcoin. The market is in a period of contraction and great financial uncertainty, which further complicates the situation for cryptocurrency. At the moment, BTC is trading at $27,485, down 1.4% in the last 24 hours.

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