Cryptocurrency analyst and trader Justin Bennett warns of a Bitcoin (BTC) correction after a massive uptrend.
Bennett tells are 110,700 followers on the social media platform
“Not a good picture for BTC while it is below $43,300. Possibly lower high [price] form and begin to weigh on trendline support. The next stop is $38,000 with a sustained break.
Bennett has been drawing attention to bearish Bitcoin signals all week.
The trader also keeps a close eye on the USDT dominance chart (USD.T), which tracks how much of the crypto market capitalization belongs to USDT. Bennett predicts that USDT.D will move higher as it reaches a critical support level, which is another bearish indicator for the markets as it suggests traders could divest their crypto holdings in favor of the stablecoin.
“The dominance of Tether USDT.D – which moves inversely to Bitcoin – has perfectly telegraphed the recent pullback. Tested and hit August 2022 low before bouncing. I’m still looking for channel support just below that level, which could mean another higher high for BTC before a more significant pullback.”
Him too say that the total market capitalization of digital assets (TOTAL) appears to have hit resistance, indicating downward pressure for Bitcoin.
“It appears the crypto market has found the selling pressure where we thought it could be. TOTAL $1.6 trillion-$1.7 trillion was/is the resistance area to watch. The first signs of a local summit here.”
Finally, Bennett warns that if Bitcoin loses support at $38,000, the next support line will be at $32,000.
“Long-awaited pullback for BTC. One possible range developing here goes to this week’s FOMC (Federal Open Market Committee). I’m still open to a $48,000 retest before a bigger correction, but $37,800 will be critical. Lose that on the HTFs (high time frames) and we probably see $32,000. We will see.”
Bitcoin is trading at $42,181 at the time of writing, down 1.7% in the past 24 hours.
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