The famous Bitcoin (BTC) analyst predicts a correction that could push Bitcoin to lows in the new bear market. Meanwhile, the Messari research report analyzes how BTC’s volatility will move in the third quarter. Here are the details…
Nicholas Merten points to $13-14k for Bitcoin
Popular crypto analyst Nicholas Merten shared his new comments with 514,000 YouTube subscribers. He said he believes technology indices like the Nasdaq are tied to a 50 percent devaluation from higher levels. The analyst said his overall goal is to at least expect technology indices like the NASDAQ to experience a 50 percent correction. According to the analyst, we are late to the 15-30 percent declines in the bear market, which is experiencing a “suitable recession”. Instead, we are subject to drastic adjustments that will bring it down 40-50-60 percent. The analyst uses the following words:
I don’t want to say the exact date or exact cost of our departure because no one really knows, but I want to give ourselves a purpose in the coming months, potentially going into the first quarter of 2023. We could see the Nasdaq drop another 28%, which would bring us down 50 to 50.5% from its all-time high.
Merten says that for the Nasdaq, such a drop is bad news for Bitcoin and gives a rough price target for the leading crypto asset. The analyst believes that if we consider that Bitcoin will remain neutral against the Nasdaq, BTC will fall equally. This will pull BTC to the $13,600-14,000 region.
Messari report: Third quarter volatility moves downward
Meanwhile, according to the latest report from crypto research firm Messari, Bitcoin’s volatility is on a downward trend in the third quarter. According to the research platform, the volatility of the cryptocurrency is seeing a slight recovery from June lows. Koindeks.com As we reported, BTC once again fell below $20,000 in September. However, the test of the $17,600 support seen in June and the key resistances near $25,000 in mid-August was the key point. Sami Kassab and Kuna Goel from Messari used the following terms:
Realized volatility is on a downward trend as Bitcoin recorded a gradual recovery in Q3. The average 30-day volatility for August was 60 percent. This level was above 80 percent in June.
Analysts added that the crypto saw much lower liquidation over the period due to low volatility in BTC. For example, total long-term liquidations were down more than 50 percent from $10.8 billion recorded in June. It was $5 billion in August. As for total short selling liquidations, the number fell to $3.5 billion last month, compared to the $6.6 billion total liquidation seen in June. Messari stated that crypto prices are more like a tech share, following the Nasdaq 100. Messari said the average correlation between BTC and the middle of the NASDAQ 100 is 0.6 percent.