Crypto market analyst Nicholas Merten says the top two cryptocurrencies are likely to see more downside ahead, after the apex crypto dropped below $36,000 on Friday, following a sell-off in U.S. equities.
Merten says the current crypto market scenario may force Bitcoin (CRYPTO: BTC) to go down to $30,000, but it will never touch the $20,000 mark.
Merten believes the cumulative market cap of Bitcoin and Ethereum (CRYPTO: ETH) is heading to sub-$900 billion.
"While we could expect some further price decline, there is a limit, a threshold where it genuinely makes sense at the end of the day to see price go down, until we start to see people limit buying and also leading the charge on the market order flow, which is going to drive the price back up," says Merten.
Also Read: Crypto Market Sees $400M In Liquidations In 24 Hours As Bitcoin Dips Below $36,000
Merten adds that BTC never actually fell as low as the preceding cycle's peak, even after significant drops.
The Bitcoin dropped below $36,000 on Friday, following a sell-off in U.S. equities. It is down over 8% this week and has fallen nearly 50% from last year's all-time high.
Popular trader Anbessa highlighted the planned support level to buy Bitcoin in what he described as a "fakeout" — a zone beginning at just under $33,000.
#Bitcoin Update
— AN₿ESSA (@Anbessa100) May 6, 2022
Twitter friendly, easy words
BTC support, BTC fakeout we want to buy. Chop very profitable it was. Now waiting for final HTF entry we do.
Superior we are. pic.twitter.com/Lt5XT5rRKw
At the time of writing, Bitcoin was trading at $35,940, almost 6.32% down in the last seven days.
Also Read: Mark Cuban And Elon Musk Believe Dogecoin Could Defeat Twitter's Spam Bots: Here's How
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