A widely followed crypto analyst is warning about Bitcoin (BTC), saying it could fall further if the bulls lose momentum.
In a new thread on the social media platform X, crypto trader Justin Bennett tells 115,500 followers that the flagship digital asset could fall all the way back to $85,000 if the BTC bulls fail to regain the $102,000 level.
According to Bennett, Fed Chairman Jerome Powell’s recent announcement that the Federal Reserve will not be allowed to hold BTC caused a crash not only in the crypto markets, but also in the stock market.
“It looks like we are heading down after BTC failed to stay above $102,000. I know everyone expects crypto to rise again tomorrow, and maybe that will happen, but this is not an isolated event for the crypto market.
Powell’s signals on Wednesday caused the stock market to plunge, with the Nasdaq falling 3.6% in one day, the DXY (US Dollar Index) rising 1.2% and breaking the key 108.00 level, and the bond yields rose 3% to new seven-month highs. . It’s risk-off until proven otherwise.
As for Bitcoin, $102,000 is the level to recover. If the bulls can’t do it, the bottom of this channel is next, with a break there opening the door to $91,600 and $85,000.”
However, the crypto strategist says he doesn’t fully believe BTC’s bull market will end if BTC fails to hold the support level at $102,000, as the top digital asset routinely drops 20-30% during its bull runs.
“The bull market is not over yet [in my opinion]. We know that in every bull market, Bitcoin experiences several pullbacks of 20-30%, which will be no different this time. The 2024/2025 holiday sale will start in a few weeks. Get ready.”
If BTC really wants to break out, it has to, according to Bennett disconnect itself away from stocks, which appear poised for the next leg down.
Bitcoin is trading at $100,838 at the time of writing, down 3% in the past 24 hours.
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Featured image: Shutterstock/Jamo Images