Crypto analyst and trader Justin Bennett is sounding the alarm, cautioning that Bitcoin (BTC) may be at risk of a significant market crash in this cycle. With a following of 110,700 users on social media platform X, Bennett warns that the leading cryptocurrency could see a decline of over 74% from its current value if a black swan event triggers a severe correction.
Referring to a potential repeat of the price pattern seen in 2020 during the onset of the COVID-19 pandemic, Bennett believes that Bitcoin could still reach levels of $10,000-$15,000. He points to systemic issues that could contribute to a similar event and emphasizes the chart’s indication of a potential downturn.
By analyzing the monthly chart, Bennett suggests that Bitcoin might drop to the diagonal support level it reached during the pandemic after encountering resistance at the Fibonacci retracement level of 0.768. Additionally, he ties Euro’s performance against the U.S. dollar (EUR/USD) to signal a downward trend for Bitcoin and the wider crypto market.
Moreover, Bennett expresses skepticism about the upcoming halving event in April, questioning whether it will provide the catalyst for a rally in unfavorable macroeconomic conditions. He underscores the importance of economic data in determining market cycle tops and bottoms.
In relation to Ethereum (ETH), Bennett indicates a potential downtrend as the cryptocurrency failed to hold the key $2,400 level as support, now acting as resistance. He suggests that Ethereum could correct to $1,450 by May. Currently trading at $2,213, Ethereum has showed a modest 1% increase in the last 24 hours.
As the crypto industry continues to navigate through potential market downturns and macroeconomic uncertainties, Bennett’s insights provide valuable perspectives for traders and investors to consider.
