In a recent update, renowned crypto analyst Nicholas Merten has voiced concern over the current state of Bitcoin, pointing to key indicators suggesting a bearish trend could be on the horizon. Speaking to his 509,000 YouTube subscribers, Merten highlighted troubling developments that have sparked apprehension among market watchers.

One of the most notable signals Merten discusses is the trend of daily outflows from Bitcoin spot exchange-traded funds (ETFs). Since late August, these outflows have become increasingly consistent, hinting at a broader market decline. This shift in investor behavior suggests that confidence in Bitcoin's near-term growth may be waning.

Merten also underscored the significance of Bitcoin’s moving averages, which are typically a crucial metric for understanding market momentum. Unfortunately, these averages are no longer acting as support for Bitcoin prices. Instead, they have transformed into resistance points, making it more challenging for the cryptocurrency to break through to higher levels.

“We see very clearly that the previous moving averages, mind you at much higher price points here, are no longer serving as means of support but as resistance,” Merten explained. “That is not a good look.”

While Bitcoin has historically proven resilient during downturns, Merten’s analysis suggests that the cryptocurrency is facing considerable resistance in the current climate. As daily outflows continue and resistance levels remain high, it’s clear that Bitcoin is entering a critical phase—one that could determine the direction of the market for months to come.

Investors and crypto enthusiasts are closely monitoring these trends, with many wondering if this bearish signal could be a temporary setback or the beginning of a prolonged downturn for the flagship cryptocurrency. For now, all eyes are on the market to see if Bitcoin can regain its footing or if further declines are on the horizon.