A widely followed crypto analyst is warning about Bitcoin (BTC), saying the crypto king could see a sharp price drop if another major market crashes.
In a new strategy session, crypto trader Justin Bennett tells his 110,800 followers on social media platform X claim that BTC and crypto in general will take a hit if the stock market crashes.
“Crypto bulls better pray the stock market doesn’t turn around, because recent relative weakness suggests the crypto market will take a hit if it does.”
According to Bennett, Bitcoin’s latest price drop could be a… fake or an anomaly, then it would already have been known.
“BTC still remains below the October 2023 trendline, and now we see a continuation.
If this were a fakeout/anomaly, it probably should have happened on that June 17th candle. Not great, especially considering that the S&P, Nasdaq, etc. have only been on the rise for a few weeks.”
Bennett continues remark that the declining market dominance of stablecoin Tether (USDT) could also have a significant impact on the digital asset market.
The trader’s charts indicate that Tether’s dominance is forming a higher low, which could spell bad news for the crypto markets.
“I have been warning about this USDT.D (Tether dominance) trendline for months, and it is still very relevant. Develop higher low? This could change, but as things stand now, it is not a good prospect for the crypto market.”
Bitcoin is trading at $65,027 at the time of writing, while Tether’s dominance level is to sit at 4.87.
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Featured image: Shutterstock/GrandeDuc/Nikelser Kate