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Bitcoin Analyst Warns of Potential Downward Spiral as Resistance Levels Pose Threat

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As Bitcoin faces resistance, an analyst expresses concern over the potential for a downward avalanche, urging caution in the face of uncertainty.

Bitcoin (BTC) is facing significant selling pressure, according to crypto analyst Nicholas Merten. Merten, known as the host of DataDash, predicts a bearish move for the leading cryptocurrency. His analysis revolves around the persistent resistance that Bitcoin has encountered at a critical channel. Merten believes that if Bitcoin cannot clear through this resistance, it could lead to a substantial downward move. He suggests that this upcoming move may hit harder than any previous resistance faced by Bitcoin. While there is potential for BTC bulls to make a case if Bitcoin breaks through the resistance zone, Merten remains skeptical and sees the approval of a spot market BTC exchange-traded fund (ETF) as a critical factor for such a breakthrough.

In the foreign exchange market, the EUR/USD pair is attempting to recover and breach the 1.0550 resistance level. However, it is currently struggling to rise above the 1.0600 resistance and the 200 simple moving average. On the 4-hour chart, a key contracting triangle is forming, with resistance near 1.0600. A break above this resistance could potentially propel the pair toward the 1.0640 resistance level.

In the cryptocurrency realm, optimism is growing for a particular spot market ETF application, which has garnered more attention than several similar applications recently submitted. False reports of Blackrock ETF approval briefly boosted Bitcoin’s price above $30,000 on October 16, underlining the heightened interest surrounding ETFs. Although this news proved to be inaccurate, it reflects a shift in attitude and sentiment towards crypto assets, with increased focus on institutional participation. Blackrock’s strong track record with previous ETFs continues to fuel optimism in the crypto market.

As of the latest update, Bitcoin’s price on CoinGecko stands at $30,647, reflecting a 2.3% gain in the past 24 hours and a seven-day rally of 10.4%.

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