Crypto analyst Justin Bennett has laid out a bearish narrative for the flagship crypto token Bitcoin. Based mostly on his evaluation, Bitcoin will doubtless drop beneath the $50,000 stage once more earlier than it strikes additional to the upside.
Bitcoin May Drop Again To As Low As $47,000
In an X (previously Twitter) submit, Bennett talked about that the value vary between $47,000 and $49,000 “is the land within the sand” for Bitcoin. This assertion got here from his perception that the crypto token will quickly see a value retracement. He additionally reminded his followers of how “Bitcoin carves important tops.”
The crypto analyst instructed that $52,000 was a ‘important prime’ and {that a} value correction may very well be imminent. Bennett added that his prediction may very well be invalidated if BTC noticed a sustained break above $53,500. In the meantime, he additionally in contrast Bitcoin and US shares, stating that there was an ongoing correlation between them.
Bennett additionally disagrees that Bitcoin’s rally may very well be longer this cycle, particularly contemplating the demand that the Spot BTC ETFs are seeing. He said his indifference about these funds and mocked how everybody predicted they might ship Bitcoin to a possible all-time excessive (ATH).
From a technical evaluation perspective, the crypto analyst was extra involved about BTC’s value motion and remarked that “the chart will inform the story.”
BTC Fundamentals Are Getting Stronger
Whereas Bennett predicts that Bitcoin will drop quickly sufficient, it’s price mentioning that the crypto token’s fundamentals are getting stronger, which might additionally dictate its value motion. Citing information from Glassnode, crypto analyst Ali Martinez not too long ago revealed that the quantity of BTC held in identified crypto trade wallets has dropped to its lowest in six years.
As highlighted by Martinez, this implies that the market sentiment across the flagship crypto is altering, with most traders trying to maintain for the long run.
That’s thought-about a constructive growth and bullish for Bitcoin’s value for the reason that quantity of BTC that may be acquired is additional lowered, creating some type of shortage.
The crypto analyst had additionally not too long ago talked about how Bitcoin holders are at the moment in a section of perception, which indicators potential additional positive factors forward for BTC.
In keeping with CoinMarketCap information, Bitcoin is buying and selling at round $51,900 on the time of writing, up over 2% within the final 24 hours.
Chart from Tradingview
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