Bitcoin (BTC) faces massive headwinds despite ongoing rally, crypto analyst Nicholas Merten warns – here’s why

Analyst and trader Nicholas Merten has reservations about Bitcoin (BTC) despite the flagship crypto asset’s massive rally over the past week.

Merten tells his 511,000 YouTube subscribers that while the correlation between Bitcoin and the Nasdaq stock index looks bullish, the macro environment is unfavorable.

“I definitely have to say that this chart here, the Bitcoin to Nasdaq ratio, got me the most excited. To see that we managed to surpass the 200-week and 200-day moving averages is definitely a really positive sign.

But as we saw here in the last day of trading, we gave up a lot of those gains. I need to see it compete here because according to history if we get up in that area [above $25,000]it doesn’t take very long here.

And we’re in a macro environment where for a riskier asset like bitcoin, where its ramps are questionable about regulators closing them, the banking infrastructure around those assets is crippling as we speak. Where will this liquidity come from?

I’m not saying retail volume and speculators and just general investors squatting for the long term can’t push it higher. But we haven’t even seen the typical correction of a typical crypto bear market.”

According to Merten, BTC is likely to be crushed by macroeconomic factors in the coming weeks.

“I just don’t see how Bitcoin is going to do very well in this environment. And until we start to see a more sustained deviation in bitcoin away from the Nasdaq as to where it continues to go, I can’t be too confident just yet.”

Bitcoin is trading at $26,665 at the time of writing, up about 35% since March 10th.

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