Popular analyst Nicholas Merten lays out a timeline for Bitcoin (BTC) and cryptocurrencies to recover from the collapse of digital asset exchange FTX and its affiliates. It is an apparent weakness as it remains below the 200-week moving average and will likely turn back down. He sets a target price of around $13,600 for a possible bottom in the Bitcoin bear market.
“We’re well below that 200-week moving average. This is a first in Bitcoin history. In addition, let’s look at the percentage drop from top to bottom; we hit around 77.6%. We may be getting closer to that 80% target, which is closer to what we should expect for many of us.
But it’s important always to take a step back; another reminder here is that an extra 3% or 4% for Bitcoin takes a lot of effort. It will take us well below the $14,000 goal towards around $13,600.
Merten says FTX’s collapse, compounded by the other recent collapses of crypto lending firm Celsius and brokerage firm Voyager, is likely to keep prices in consolidation for at least a year and possibly even two more years. “I know many people want to buy the flash dips here, but as you can see, the price will take a long time. Even if this is the bottom, it will take a long time to consolidate before things even out. Trust me, FTX, the whole situation is a total mess.
This is a disgrace to the industry, and believe me; I have no reason to say it… It’s going to set this industry back. Also, everything that happened with Celsius, Voyager, and all the big players will set this industry back another year. You can bet on it. At least possibly a year or two with the distrust this will create in the institutions.