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A closely watched crypto strategist is issuing a stark warning to holders of Bitcoin (BTC) and Ethereum (ETH).
Cryptocurrency analyst Justin Bennett tells his 106,800 Twitter followers that the recent sell-off in the stock market points to an impending downward movement for Bitcoin.
“Selling stocks today is more than just a red day. This confirms a huge fake, and will likely lead to an extended decline. The pre-COVID peak of 3,400 is a major target. I’ve been saying this since May. It would be -16% for the S&P 500 or About -30%-40% for BTC if that happens.
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At the time of writing, Bitcoin is trading at $20,049. A 40% devaluation could lead to BTC trading at the $12,000 price level.
Taking a closer look at Bitcoin, Bennett says that BTC is at risk of falling below the country support that has underpinned the top cryptocurrency since 2015.
“BTC is testing the 2015 trend line again. Anyone who tells you this looks healthy is either ignorant or lying. Note the two long lower wicks of 2015 and 2020. This indicates strong demand. We see the opposite this time.”
As for Ethereum, Bennett indicates that ETH is forming a head and shoulders top on the four-hour chart with a bearish target of $1,000.
“The right shoulder of this potential ETH Head and shoulders formation begins. Confirmation of less than 1500 dollars.
At the time of writing, Ethereum is trading at $1,498, just below the neckline of the pattern and the Bennett confirmation level.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making high-risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
Featured Image: Shutterstock/gonin