• Crypto analyst Nicholas Merten of the YouTube channel DataDash recently shared his thoughts on the current state of Bitcoin and the crypto market.
• He emphasized the importance of analyzing momentum indicators to understand the market’s short-term direction.
• Despite numerous narratives suggesting a potential new bull market, an increase in stablecoin liquidity is essential for it to occur.
Overview
Popular crypto analyst Nicholas Merten of the YouTube channel DataDash recently shared his thoughts on the current state of Bitcoin and the crypto market, emphasizing the importance of analyzing momentum indicators to understand its short-term direction. Despite numerous narratives suggesting a potential new bull market, an increase in stablecoin liquidity is essential for it to occur.
Bearish Resurgence
Bitcoin has not made any new highs for nearly a month and its price is at its lowest since March 17th. The Dash Report and Lux Algo signal that bears are taking control in the short term despite weekly trends showing bulls in control since January’s breakout.
Potential Bull Market
Various narratives have been applied to explain the potential for a new bull market such as central bank balance sheet expansion or bank runs, however none of these have held true as U.S Central Bank balance sheet has contracted, stablecoin liquidity has remained flat and global liquidity has contracted as well leading to questions about whether there may be another bull run soon.
Liquidity Is Key
An increase in stablecoin liquidity is essential for on-ramps of new liquidity from hedge funds, family funds, and high-net-worth individuals into the crypto space which could lead to a bull run. However this requires overcoming various challenges such as setbacks caused by FTX & Celsius exchanges or loss of institutional backbones like Genesis, Silver Gate & Signature Bank hindering off ramps for large scale companies driving down dollar liquidity overall in this space..
Conclusion
In conclusion, it appears that while there may be potential for a new bull run soon if certain conditions are met such as an increase in stablecoin liquidity and overcoming various challenges faced by crypto industry such as those mentioned above , only time will tell if we can expect one anytime soon