Nicholas Merten from DataDash analyzed the Bitcoin price, and discusses important key metrics to keep an eye on for potential signs the market is oversold. He also talks about which sector or specific cryptocurrencies are going to lead the way in the next altcoin wave because he is expecting the altcoin dominance to continue rising alongside bitcoins price action.
Bitcoin is setting higher lows at a general support range around $45,000, playing out like it typically does historically. The correction also happened in January before setting a new all time high in February (1:15).
Nicholas says one of the clear reasons that Bitcoin has been oversold is a negative level on the Grayscale premium ($GBTC), which might signal a market reset for a fresh bitcoin rally (2:47).
Nicholas thinks the war between Ethereum, Cardano, Binance Smart Chain and other top smart contract chains, like Avalanche will determine what players are going to lead the next altcoin waves (8:27).
He added that if layer 2 scaling, such as optimism or zk-rollups get delivered properly in the month of March, Uniswap and other protocols migrate promptly on the layer 2 solutions. This will get the Ethereum gas fees into reasonable ranges, and the position of Ethereum as the number one blockchain protocol will most likely be solidified (11:15).