Bitcoin Could Experience a Significant Correction, Warns Analyst
Crypto analyst Justin Bennett is cautioning investors about the potential for a major correction in Bitcoin (BTC) despite its impressive rally in 2023. He points out that in the last two halving cycles, Bitcoin experienced two capitulations: one in 2015 and 2016 and another in 2019 and 2020. Based on Bennett’s analysis, Bitcoin could reach around $50,000 before reversing course. However, he suggests that a correction of approximately 43% from its current level should not be disregarded. Bennett believes there is a possibility of a liquidity sweep down to $25,000.
Bitcoin’s Current Price and Market Outlook
As of now, Bitcoin is trading at $44,146. Despite the ongoing rally, Bennett remains unconvinced that the crypto markets are firmly in a bullish phase. He cites several reasons for his lack of conviction, including the significant differences in the macro landscape compared to previous crypto bull markets. Additionally, he notes that certain prominent stocks driving the recent market push are trading at high long-term premiums rather than discounts as seen in previous cycles.
Ethereum’s Bearish Scenario
Bennett maintains his bearish outlook on Ethereum (ETH), the second-largest cryptocurrency by market capitalization. He predicts that ETH could potentially fall by approximately 67% from its current price. At present, Ethereum is trading at $2,267.
Hot Take: Potential Correction Looms for Bitcoin
While Bitcoin continues its impressive rally, analyst Justin Bennett warns investors about the possibility of a significant correction. Drawing from historical patterns during previous halving cycles, Bennett suggests that Bitcoin may reach $50,000 before experiencing a potential 43% correction. He advises caution and highlights the potential for a liquidity sweep down to $25,000. Despite the ongoing rally, Bennett remains skeptical about the bullish phase of the crypto markets, pointing out key differences in the macro landscape and overvalued stocks. Additionally, he maintains a bearish outlook on Ethereum, projecting a potential 67% decline from its current price.
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