Crypto Strategist Warns of Bitcoin Correction
Cryptocurrency analyst and trader Justin Bennett is cautioning that Bitcoin (BTC) may experience a correction following a significant uptrend. Bennett suggests that a bearish trend reversal might be forming for Bitcoin, potentially leading to a drop to the $38,000 level. He emphasizes that BTC needs to stay above $43,300 to maintain a positive outlook. Bennett has been highlighting bearish signals for Bitcoin throughout the week.
Watching USDT Dominance Chart
Bennett is closely monitoring the USDT dominance chart (USD.T), which indicates the portion of the crypto market capitalization held by USDT. He predicts that as USDT dominance reaches a critical support level, it could result in traders selling their cryptocurrencies in favor of stablecoins. This is seen as another bearish indicator for the markets.
Market Cap of Digital Assets Hits Resistance
According to Bennett, the total market cap of digital assets (TOTAL) has encountered resistance, suggesting downward pressure for Bitcoin. This resistance area is around $1.6 trillion to $1.7 trillion.
Potential Support Levels
If Bitcoin loses support at $38,000, Bennett warns that the next line of support is at $32,000. He believes that a pullback for BTC is long overdue and there may be a range developing leading up to this week’s Federal Open Market Committee meeting.
Bitcoin Price and Conclusion
At the time of writing, Bitcoin is trading at $42,181 with a 1.7% decrease in the past 24 hours. It remains to be seen whether BTC will experience the correction predicted by Bennett.
Hot Take: Crypto Analyst Cautions of Bitcoin Correction
Crypto strategist Justin Bennett is sounding the alarm on a potential Bitcoin correction. According to Bennett, BTC’s price action is indicating a bearish bias, with a possible lower high forming and weighing on trend line support. He points out key levels to watch, including $43,300 and $38,000, which will determine the future direction of Bitcoin. Furthermore, Bennett highlights other bearish signals such as the USDT dominance chart and resistance in the total market cap of digital assets. As Bitcoin faces downward pressure, traders should be prepared for a potential pullback.
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