A closely-followed crypto analyst has warned investors not to get overly excited after the market crashed over the weekend.
Justin Bennett tells his 107,100 Twitter followers that he expects crypto prices to continue falling told. Moreover, the recent recovery could be a bull trap that misleads investors.
“Don’t be fooled by this. That being the case, this week’s rally is; nothing more than a bearish retest/bull trap.”
Bennett presented two charts showing Bitcoin (BTC) dipping below the ascending channels: the first is a chart going back to 2014, and the second reveals price movements since last April.
Koinfinans.com As we reported, the analyst then evaluated the possibility of altcoins being a safe-haven based on the larger negative macroeconomic outlook.
“To those who say that altcoins won’t pull back that much… It has already pulled back once. Altcoins have pulled back over 90% in the last bear market. So, this time around severe inflation, a global recession, etc. Thinking they’ll stop at -74% with [bence] becomes pure.”
Bennett presented two more charts, which represent the total crypto market cap minus Bitcoin. The first looks at the daily candles since May and the other shows the weekly candles dating back to 2016.
“Don’t forget to zoom out.
Left: How altcoins look on the daily chart.
Right: What they look like on a weekly basis.
[Bence] crypto has less places to go.”
The crypto analyst concluded his analysis by recalling how the S&P 500 fell last Friday after Federal Reserve chief Jerome Powell announced further rate hikes. Bennett thinks assets at risk do not look promising in the short term.
“There is a slight rebound in crypto today, but don’t overlook what the S&P 500 did on Friday. The upside of risky assets is limited [bence]”
Bitcoin has bounced back into negative territory after briefly recapturing the $20,500 level on Monday. At the time of writing, BTC is trading at about $19,722.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.