In a recent video by Nicholas Merten from DataDash, a deep dive into the current state of the cryptocurrency market was provided, with a focus on whether now is the right time to go long on Bitcoin and altcoins. The video explores Bitcoin’s recent price movements, the impact of Bitcoin ETF flows, and the state of various altcoin markets, including Ethereum and other noteworthy projects. Additionally, Merten discusses the importance of monitoring broader market trends, including equities, to gain a comprehensive understanding of the potential direction of crypto assets.
Project Overviews:
- Bitcoin: Bitcoin’s recent price action has seen a notable 12% move from the mid-$55,000 range to the low $60,000s, with continued consolidation above key moving averages. Merten highlights the significance of Bitcoin needing to close above $72,000 on a weekly or monthly basis to signal the start of a new bullish trend. Despite some positive signs, Merten remains cautious, advising viewers to wait for stronger confirmations before committing to long positions.
- Ethereum: Ethereum has been struggling since its peak in December 2021, currently down 55%. Merten expresses concern over the lack of fundamental progress within the Ethereum ecosystem, despite the initial promise of decentralized finance (DeFi). The current transaction throughput remains similar to 2020 levels, and the low gas fees indicate reduced demand. While the price may seem attractive due to discounts, Merten advises against jumping in without clear signs of momentum.
- Render (RNDR): Render has shown some signs of life after prolonged downward pressure, with a recent explosive move against Bitcoin. Merten is watching closely to see if Render can maintain support on its 21-day moving average, which could indicate the potential for a strong upward trend. He suggests keeping a close eye on this project as it could be a good buy if the broader market shows signs of strength.
- Stacks (STX): Stacks has been relatively stable against Bitcoin since May, with signs of finding support around its 200-week moving average. Merten sees this as a positive indicator and is interested in seeing if Stacks can build on this foundation to break out higher. This project, part of the Bitcoin infrastructure narrative, could be a strong performer if Bitcoin itself gains momentum.
- Meme Coins (e.g., Pepe): Meme coins have seen significant corrections, with Pepe down 45% from its highs. Merten points out that while meme coins may offer short-term trading opportunities, they are highly volatile and should be approached with caution. He emphasizes the importance of waiting for clear signs of momentum before jumping into these trades.
- Layer One Protocols (Aleph Zero, Radix): Merten advises not to overlook the potential of layer one protocols like Aleph Zero and Radix. These projects offer innovative features such as enhanced privacy and scalability, which could make them strong contenders in the next bull market. Aleph Zero, in particular, is highlighted for its privacy-focused approach and integration with other ecosystems, making it a project to watch closely.