A prominent crypto analyst is issuing a cautionary warning regarding the potential for Bitcoin (BTC) to see a significant drop, possibly reaching the $63,000 mark.
Justin Bennett, a respected crypto trader with a substantial following on the social media platform X, is advising his audience that Bitcoin could experience a decline of over 18% from its current valuation.
Bennett’s analysis points to various indicators suggesting a bearish trend for Bitcoin. He highlights the recent breakdown of the October 2023 trendline, combined with imbalances on February 26th and 27th, as factors pointing towards a possible range of $52,000-$54,000 in the near future. He emphasizes the presence of substantial liquidity below the $56,500 level, indicating a potential downward movement in search of liquidity. While a brief surge above $72,000 is not entirely ruled out, the current outlook leans towards a downward trajectory, influenced by the BTC chart and external factors like the Dollar Index (DXY). Bennett advises a level-by-level approach in navigating the market.
Examining his chart analysis, Bennett suggests a scenario where Bitcoin could initially dip to $60,751, rebound to around $63,000, and then witness a significant drop below $54,000.
Furthermore, Bennett observes a recurring resistance point around the $65,000 level on Bitcoin’s monthly chart, indicating a persistent challenge in establishing support within that range since 2021. He stresses that being bullish on BTC at this juncture essentially means being bullish at a point of resistance, making it a challenging position to maintain. Despite his critical stance, Bennett clarifies that his analysis is not driven by animosity towards Bitcoin or crypto but by factual observations from the charts that paint a less favorable picture. He notes the current dependence of the crypto market on the stability of the stock market to prevent a potential downturn.
As of the time of writing, Bitcoin is valued at $63,671, registering a decrease of over 1% in the past 24 hours.
