Bitcoin Could Experience Significant Decline, Warns Crypto Strategist
According to renowned crypto analyst Justin Bennett, there is a possibility that Bitcoin (BTC) could face a sudden and substantial drop in value. Bennett, who has a large following on social media platform X, explains that if Bitcoin fails to hold the $61,000 support level, the leading cryptocurrency may remain in a downtrend for an extended period. However, he also notes that if Bitcoin manages to surpass the $65,000 threshold on the monthly chart, this would confirm a bullish trend.
Bennett expresses concern about Bitcoin’s current performance, describing it as “pretty terrible” and cautioning against buying at the moment. He believes that the ongoing slow decline could potentially trigger a series of long liquidations, but acknowledges that there is a chance for a different outcome this time. He emphasizes the importance of Bitcoin holding the $61,000 mark for the bulls, while also highlighting the significance of the $65,000 resistance level on a monthly basis.
Moving on to Ethereum (ETH), Bennett predicts that its value against Bitcoin (ETH/BTC) is likely to decrease after failing to maintain a crucial support level. He points out that ETH/BTC has broken its 2017 diagonal trend line on both the weekly and monthly charts, indicating a potential move towards the 3.8-4% highs.
At the time of writing, ETH/BTC is trading at 0.048 BTC ($3,019), showing a slight increase in the past 24 hours.
Lastly, Bennett raises concerns about Ethereum’s price trajectory, suggesting that it may follow a bearish pattern similar to that seen in July 2023 if it fails to reclaim the $3,150 level on the weekly chart. He describes the ongoing decline in Ethereum’s value as worrisome and emphasizes the need for it to recover above $3,150 this week to avoid further complications. Bennett cites the example of July 2023 to highlight the significance of a simple trend line.
As of now, Ethereum is trading at $3,017, showing a 1.5% increase in the past 24 hours.
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