A popular crypto analyst shared his current forecast for Bitcoin (BTC).
Closely followed trader Justin Bennett tells his followers that BTC could experience a big drop. warned. The analyst drew attention to the price action of the S&P 500 (SPX):
“Those who are expecting a mega-rise in BTC again (the majority of the crypto Twitter community). Ask yourself this…
How long can Bitcoin rally with SPX looking like this? (…)
If stocks don’t bounce soon, that will eventually drag crypto with it.
The closest BTC rose while SPX fell was mid-February, after which Bitcoin plunged 22%.
So if stocks don’t find a bottom soon, this Bitcoin rally could be short-lived.”
Bennett describes BTC’s recent peak as a “fake breakout” after looking at price movements.
“Fake breaking.
Do I need to tell you what’s next?”
However, despite the analyst implying that BTC is in a big drop in his analysis, he recently shared another update in which he suggested that BTC may not collapse after all.
“Everybody survived? It usually takes a few days to find a solution after such volatility, so be careful. I still think we’ve seen the bottom, but I could be wrong.”
Bennett also examined the relative strength indicator (RSI) of the Dollar Index (DXY). According to Bennett, DXY’s RSI is showing signs of bullishness, but what this means for Bitcoin is not yet clear:
“The RSI is not part of my trading strategy, but the DXY daily RSI looks interesting.
We still need a breakout of this trendline and a higher high on the dollar (higher than the previous high), but the RSI is temporarily bullish for now.
Let’s wait and see.”
You can follow the current price action here.