Crypto Analyst Justin Bennett Warns of Possible Bitcoin Crash to $10,000: Here's the Reason

A Potential Bitcoin Market Crash on the Horizon, Says Analyst Justin Bennett

Crypto analyst and trader Justin Bennett is cautioning that Bitcoin (BTC) could experience a significant market crash during this cycle. Bennett believes that if a black swan event triggers a severe correction, the crypto king could decline by over 74% from its current value.

Referencing Bitcoin’s price pattern in 2020 during the onset of the COVID-19 pandemic, Bennett suggests that a similar scenario could unfold. He points out that there are numerous systemic issues to consider this time around, making a crash to $10,000-$15,000 BTC possible.

Potential Diagonal Support Level and Euro Performance

Examining the monthly chart, Bennett proposes that Bitcoin might collapse to the diagonal support level it touched during the pandemic after facing resistance at the Fibonacci retracement level of 0.768.

Bennett also draws attention to the performance of the Euro against the US dollar (EUR/USD), suggesting that it indicates a downward trend for Bitcoin and the broader crypto market.

The Impact of Bitcoin’s Halving Event and Ethereum’s Downtrend

Bennett argues that Bitcoin’s upcoming halving event in April may not act as a catalyst for a rally if unfavorable macroeconomic conditions persist. He emphasizes that economic data plays a crucial role in determining cycle tops and bottoms.

Additionally, Bennett states that Ethereum (ETH) might be in a downtrend after failing to hold the key support level of $2,400. He predicts that Ethereum could correct to $1,450 by May.

Hot Take: A Warning for Bitcoin and Ethereum Investors

According to Justin Bennett, there is still a possibility of a significant market crash for Bitcoin, with a potential decline to $10,000-$15,000. He points out that systemic issues and a price pattern from 2020 support this concern. Additionally, Bennett warns that Ethereum may be in a downtrend after failing to hold the $2,400 support level. These predictions serve as cautionary advice for investors in both cryptocurrencies.