Crypto analyst and trader Justin Bennett warns that Bitcoin (BTC) could still suffer a massive market crash this cycle.
Bennett tells According to his 110,700 followers on social media platform
According to the strategist, there is still a possibility that Bitcoin repeats a similar price pattern in 2020, when the crypto king plummeted at the beginning of the COVID-19 pandemic.
“$10,000-$15,000 BTC is still in the cards, IMO (in my opinion). Sure, COVID was a black swan, but it’s not like we don’t have a laundry list of systemic issues to choose from this time around. The graph speaks for itself.”
Looking at his monthly chart, the trader suggests that Bitcoin could collapse to the diagonal support level that Bitcoin reached during the pandemic after facing resistance at the Fibonacci retracement level of 0.768.
The trader too believes The performance of the euro against the US dollar (EUR/USD) indicates that Bitcoin and the broader crypto market are in a downward trend.
“The fiat currency market is once again showing warning signs about what the future could hold for Bitcoin and the rest of the crypto market.”
He’s also warning that Bitcoin’s upcoming halving in April may not be a catalyst for a rally if there are adverse macroeconomic conditions.
“Bitcoin is programmed to rise because of the halving, right? Wrong… The halvings are a crucial part of the tokenomics that make Bitcoin an incredible long-term holding. But economic data is key in determining the tops and bottoms of the cycle.”
Finally, the trader say that Ethereum (ETH) may be in a downtrend after failing to hold the key $2,400 level as support.
“ETH failed to stay above $2,400, so that is resistance now. It is still my very unpopular opinion that the top is busy with crypto.”
Looking at his chart, the trader suggests that Ethereum could correct to $1,450 by May.
Ethereum is trading at $2,213 at the time of writing, up almost 1% in the past 24 hours.
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