Crypto analyst Justin Bennett tells his 106,800 Twitter followers that the recent sell-off in the stock market hints at an imminent downward move for Bitcoin.
“Today’s sell-off in shares is more than just a single red day. It confirms a massive fakeout that is likely to trigger a longer move lower. The pre-COVID high of 3,400 is a priority target. I’ve been saying that since May. That would be -16% for the S&P 500, or about -30% to 40% for BTC if it happens.”
At the time of writing, Bitcoin is trading at $20,049. A 40% depreciation could see BTC trading at the $12,000 price level.
Taking a closer look at Bitcoin, Bennett says BTC is in danger of falling below diagonal support that has propelled the top crypto since 2015.
“BTC is retesting the 2015 trendline. Anyone telling you this looks healthy is either ignorant or lying. Note the two long lower wicks from 2015 and 2020. This indicates strong demand. This time we’re seeing the complete opposite of that.”
Regarding Ethereum, Bennett highlights that ETH is making a head and shoulders spike with a downside target of $1,000 on the four-hour chart.
“The right shoulder of this potential ETH The head and shoulders begin to form. Confirmation under $1,500.”
At the time of writing, Ethereum is exchanging hands at $1,498, below the pattern neckline and Bennett’s confirmation level.
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