Cryptocurrency analyst Justin Bennett makes a remarkable warning, stating that Bitcoin may enter a correction period after a major uptrend. Bennett states that Bitcoin’s decline to levels below $43,300 does not reflect a positive picture for the market, and warns investors that if this situation continues, Bitcoin may fall to around $38,000. Here are the details…
According to the analyst, Bitcoin’s current correction trend may become more pronounced as it breaks the critical $43,300 resistance level. In this case, Bennett emphasizes that Bitcoin could show a bearish trend towards the $38,000 support level. The analyst warns investors that this potential decline could signal a general trend change in the cryptocurrency market.
“Below $43,300 is not a good look for BTC. It is possible for a lower high to form and start to put pressure on the trend line support. “The next stop in a sustained breakout is $38,000.”
In addition to this possible downward trend in Bitcoin prices, Bennett also draws attention to the USDT (Tether) dominance chart. This indicator tracks how much of the crypto market value belongs to USDT. Bennett predicts that USDT.D will rise further as it reaches a critical support level; This is another bearish indicator for the markets as it suggests investors may dump their crypto holdings in favor of stablecoins.
“Tether dominance USDT.D, which moves inversely to Bitcoin, perfectly heralded the latest pullback. It was tested and hit an August 2022 low before bouncing. I’m still watching the channel support just below this mark; “This could mean another higher high for BTC before a more significant pullback.”
NEWS CONTINUES BELOW
The analyst also says that the total market cap (TOTAL) of digital assets is facing resistance, indicating downward pressure for Bitcoin.
“It looks like the crypto market has found selling pressure exactly where we thought it would. TOTAL $1.6 trillion – $1.7 trillion was and remains the resistance area to watch. “There are first signs of a local peak here.”
Finally, Bennett said that if Bitcoin loses its support at $38,000, the next support will be $32,000. warns.
Bitcoin is trading at $42,464 as of this writing.
You can follow the current price movement here.