Warren Buffett sells shares, bearish sign for Bitcoin?

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 the cryptocurrency is sorely lacking in price models to support a short-term uptrend, making a significant price increase unlikely.

The massive sale of Buffett’s stocks is a bearish signal for financial markets, according to DataDash

The price of Bitcoin is currently in a stagnant phase and is unable to break the $30,000 mark. However, this situation could become even more complicated.

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.

Look what price is doing now. Looks relatively choppy, inconsistent. Certainly not a Bitcoin bank run as everyone is selling us. So if there’s not some major run to Bitcoin during this time where people are switching to different banks, chasing better yields, losing a bit of trust in the financial system, during this prime time for Bitcoin potentially to be that asset and we’re not seeing it in the price, what is the narrative going to be? What is going to drive Bitcoin’s price higher?

Buffett’s share sell-off is another sign that markets are not heading towards 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.