A widely followed crypto- Analyst examined traditional stocks with “big implications” for crypto investors.
Analyst Justin Bennett tells his 111,400 Twitter followers that the outcome of the current triangle formation at Dow Jones Industrial (DJI) could impact crypto in 2023.
“This is the DJI triangle that could have big implications for stocks and crypto this year.
He’s still hugging. The blue levels are the measured targets based on the direction of the breakout.”
NEWS CONTINUES BELOW
Bennett later bitcoin (BTC) studied volume levels. The trader says that recent BTC price movements are harbingers of volume weakness.
“Sometimes all you need is volume.
The recent bearish divergence between BTC’s highs and volume’s lows indicated weakness.
That was a great precursor to this week’s decline.”
Bennett also says that BTC’s volume levels preceded similar fluctuations in April 2021.
“And this isn’t the first time Bitcoin has alerted us through a drop in volume.
Even the peak in April 2021 heralded a decline in volume for three months.
I tweeted about it at the end of April.”
A decrease in volume does not always indicate a price drop. But Bennett says this is a metric investors should consider.
“A drop in volume may not always be a harbinger of an upcoming correction. But a market has made higher highs for two weeks or more. When you see volume making lower peaks, it’s time to pay attention.”
As Koinfinans.com reported, BTC is worth $21,652 at the time of writing. However, it fell 4% during the day.