Nicholas Merten, a widely followed crypto analyst, recently sounded the alarm by stating that the massive sale of stocks by investing legend Warren Buffett does not bode well for financial markets, including Bitcoin. According to him, the current rally in cryptocurrency is sorely lacking in price models to support a short-term uptrend, making a significant price increase unlikely.
Indeed, Nicholas Merten, a cryptocurrency analyst well-known for his show DataDash, warns about Warren Buffett’s recent massive sale of stocks. He thinks that this is a bearish signal for financial markets.
In a new video, Merten explains that the sale of billions of dollars worth of stocks suggests that the bull market could lose its strength and that the current Bitcoin rally lacks price models to support a short-term uptrend.
According to Merten, there is nothing in the short term that could stimulate a price increase for Bitcoin. He points out that the American banking crisis did not lead to a massive rush to Bitcoin as some had predicted. Instead, the cryptocurrency price is relatively unstable and falling.
Buffett’s share sell-off is another sign that markets are not heading toward a short-term uptrend. Buffett is usually buying at the beginning of a new cycle. He is now selling billions of shares in his company, Berkshire Hathaway. This massive sale of shares suggests that the investment legend does not believe in a trend reversal anytime soon.
For Merten, there are few new narratives that could actually support a long-term uptrend for Bitcoin. The market is in a period of contraction and great financial uncertainty. That makes the situation even more complicated for the cryptocurrency. For now, BTC is trading at $27,485, down 1.4% over the past 24 hours.