A closely followed crypto strategist issues a dire warning to holders of Bitcoin (BTC) and Ethereum (ETH).
Crypto analyst Justin Bennett tells his 106,800 Twitter followers that the recent stock market sell-off suggests an imminent downward move for Bitcoin.
“Today’s stock sell-off is more than just a single red day. It confirms a massive fake-out, likely causing an extended move downwards. The 3,400 pre-COVID high is a prime target. I’ve been saying this since May That would be -16% for the S&P 500 or about -30%-40% for BTC if it happens.
At the time of writing, Bitcoin is trading at $20,049. With a 40% devaluation, BTC could trade at the $12,000 price level.
Taking a closer look at Bitcoin, Bennett says BTC is in danger of breaking below a diagonal support that has supported the top crypto since 2015.
“BTC is testing the 2015 trend line again. Anyone who tells you this looks healthy is either clueless or lying. Note the two long lower blades from 2015 and 2020. That indicates strong demand. This time we see the opposite of that.”
As for Ethereum, Bennett emphasizes that ETH is head and shoulders high on the four-hour chart with a downward target of $1,000.
“The right shoulder of this potential ETH head and shoulders begin to form. Confirmation under $1,500.”
At the time of writing, Ethereum is trading for $1,498, below the pattern’s neckline and Bennett’s confirmation level.
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