The value of Bitcoin (BTC) has increased significantly over the past week, giving momentum to the cryptocurrency market. This rise has caught the attention of many investors and crypto users, causing them to make predictions about future movements. A widely followed crypto analyst has updated his forecast for the markets after a profitable week for digital assets.
Crypto trader Justin Bennett says it’s not the right time to open a long position in Bitcoin (BTC). allegation is doing.
“I think it is definitely not where you want to open a Bitcoin long position.”
A “long position” refers to positions made by investors when the price of an asset rises. An investor opens a long position, waiting for the price of a particular asset (for example, stocks, cryptocurrencies, commodities, etc.) to rise. The investor aims to make a profit by buying the asset at a lower price and selling it at a higher price. For example, an investor who wants to take a long position on Bitcoin buys Bitcoin at its current price and waits for the price to rise. If the price goes up, the investor makes a profit by selling the asset at a higher price.
Bitcoin surged over 17% last week and is trading at $30,871 at press time.
Besides, Bennett also examined the US dollar index (DXY). DXY is a benchmark used to determine the strength of the US dollar and to track the performance of the dollar in foreign exchange markets, and represents a basket weighted with six different major currencies. In general, when DXY strengthens, BTC tends to weaken. According to Bennett, DXY is about to get stronger.
“Go bearish on DXY if you want. I still think we got a rally to fill last year’s imbalance 109-110.”
Finally, Bennett coined the two major stock indexes (Dow Jones Index and the S&P 500 Index). Looking at the two traditional stocks, Bennett seems to indicate that he is betting on the short term bearish.
GM fam. ☕️$SPX is still coming off channel resistance at 4,430.
Would love to see a break below 4,325 to confirm the fakeout and give us a nice risk-off move to play next week.#stocks pic.twitter.com/TW4g1poaPk
— Justin Bennett (@JustinBennettFX) June 23, 2023
You can check the price movements here.