The crypto space can get chaotic. It’s common for bullish and bearish sentiments to clash, and a renowned crypto analyst and trader, Justin Bennett, gives a warning signal.
With a substantial following of over one hundred thousand on the social media platform X, Bennett suggests that Bitcoin might be on the brink of a massive market crash, potentially plummeting more than 70% of its current price. Today, we’ll dive into Bennett’s insights and explore the factors behind his bearish sentiment.
Possibility of a Repeat
Bennett compares the events of 2020, a chaotic year marked by the onset of the pandemic. During that time, Bitcoin experienced a significant decline, and Bennett speculates that a similar price pattern might be in the cards for the current market cycle.
While acknowledging the unique nature of the pandemic as a black swan event, Bennett argues that the crypto space is not immune to systemic issues that could trigger a severe correction.
Technical Analysis and Euro’s Impact
Backing his cautionary stance with technical analysis, Bennett points to a monthly chart, suggesting that Bitcoin could retreat to a diagonal support level witnessed during the pandemic.
Additionally, he emphasizes the significance of the Euro’s performance against the U.S. dollar (EUR/USD) as an indicator of a potential downward trend in the broader crypto market.
Halving Event Not a Guaranteed Rally
Contrary to the prevailing sentiment that Bitcoin’s upcoming halving event in April is a surefire catalyst for a price rally, Bennett challenges this belief.
He acknowledges the importance of halvings in Bitcoin’s long-term tokenomics, but Bennett also suggests that economic data holds more sway in determining market cycles. In essence, bad macroeconomic conditions might hinder the anticipated positive impact of the halving on Bitcoin’s price.
Bennett extends his caution to Ethereum, highlighting concerns about its failure to sustain support at the critical $2,400 level. If ETH fails to hold support at that level, $2,400 will become a resistance level for Ethereum. He ventures into the somewhat unpopular territory of speculating that the crypto market’s peak may already be behind us, foreseeing Ethereum correcting to $1,450 by May.
In a market where predictions and analyses can be one-sided, Justin Bennett’s warning about the potential for Bitcoin to crash to $10,000 offers a sobering perspective. As the crypto community watches and speculates, only time will tell whether Bennett’s cautious outlook proves prescient or if the crypto market continues its unpredictable journey, defying expectations.