Bitcoin (BTC) has had a rough start to September, continuing the decline that began in August. The Bitcoin price is currently on thin ice, and with the coin’s historically poor performance in September, many investors are holding their breath.
The world-renowned crypto analyst Nicholas Merten is very pessimistic and even speaks of an imminent ”collapse” in his most recent YouTube video. He also gives an extensive explanation of the reasons behind his bearish prediction.
Multiple Bitcoin ETFs Bleeding
Merten discusses everything related to crypto and the financial markets on his ‘DataDash’ YouTube channel. And with over half a million subscribers, he is far from a small player in this field.
A few days ago, he warned his viewers that Bitcoin is in a bad way at the moment. A major Bitcoin crash is ”inevitable” according to the analyst and he points to the disappointing results of the Bitcoin spot Exchange-Traded Funds (ETFs) in particular.
Launched in January, these Bitcoin funds have been recording daily outflows since last Tuesday (August 27). In total, the funds have lost over $800 million since then, which is understandably a big drag on the Bitcoin price. Last Tuesday, the funds even saw their biggest loss in over four months, with an outflow of almost $300 million.
In his video, Merten raises the worrying issue that outflows are not only coming from Grayscale’s GBTC fund, but also from the new ETFs.
The GBTC fund had been tradable as a closed-end trust since 2013, but was converted into a spot ETF in January. Since then, nearly $20 billion has flowed out of the fund due to sky-high fees.
Now that the cheaper Bitcoin ETFs have also been bleeding heavily lately, this is a clear signal to Merten that ”things aren’t looking good”.
“There are a lot more big red numbers for outflows than new inflows. Just look at the last few days of August… You see multiple ETFs here just bleeding, people are moving their capital out,” the analyst said.
Moving averages act as resistance
The analyst also mentions another bearish signal; namely, that several of Bitcoin’s moving averages are now starting to act as resistance levels instead of providing support.
He said the following:
“We see very clearly that the previous moving averages, mind you, at much higher price levels, are no longer serving as support, but as resistance. That’s not a good sign here.”
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Source: https://newsbit.nl/bitcoin-ineenstorting-is-onvermijdelijk-bekende-youtuber-deelt-waarom/
