Crypto analyst Justin Bennett tells his 106,800 Twitter followers that the recent sell-off in the stock market suggests an imminent move to the downside for Bitcoin.
“Today’s sell-off from stocks is more than just a single red day. It confirms a massive fakeout, likely triggering an extended move lower. The 3,400 pre-COVID high is a prime target. I’ve said this since May. That’d be -16% for the S&P 500 or about -30%-40% for BTC if it happens.”
At time of writing, Bitcoin is trading at $20,049. A 40% devaluation could see BTC trading at the $12,000 price level.
Looking closer at Bitcoin, Bennett says that BTC is in danger of breaking below a diagonal support that has buoyed the top crypto since 2015.
“BTC is once again testing the 2015 trend line. Anyone telling you this looks healthy is either clueless or lying. Notice the two long lower wicks from 2015 and 2020. That indicates strong demand. We’re seeing the complete opposite of that this time.”
As for Ethereum, Bennett highlights that ETH is forming a head and shoulders top on the four-hour chart with a downside target of $1,000.
“The right shoulder of this potential ETH head and shoulders is starting to form. Confirmation below $1,500.”
At time of writing, Ethereum is swapping hands for $1,498, below the neckline of the pattern and Bennett’s confirmation level.
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