Crypto analyst Justin Bennett weighs in on where the overall crypto markets could finally find a bottom amid ongoing bearish price action.
In a new tweet, Bennett says his technical analysis suggests that the total market capitalization of all crypto assets could fall to $950 billion, representing roughly a 30% drop from current levels.
“The measured objective of this recent triangle implies a $950 billion total crypto market cap or -30% from today’s price… That’s what the technicals say. Doesn’t mean it will happen.”
The closely-followed analyst says that a declining stock market could be the bearish trigger to weigh down on crypto assets. According to him, a plunge below 4,000 for the S&P 500 Index could be on the horizon, dragging Bitcoin and other digital assets with it.
“S&P 500 breakdown confirmed. Anticipating a 5%-10% correction from here at a minimum.
Keep in mind that even the ascending broadening wedge is an exhaustion pattern…
This matters for crypto. 99.9% of CT [crypto Twitter] has been focused on Bitcoin. Meanwhile, we’ve seen red flag after red flag from the S&P.
Everything is correlated when risk-off sentiment hits and stocks are still the #1 risk asset.”
Bennett’s perspective on the downside risk for crypto is in line with the outlook of fellow crypto analyst Smart Contracter, who recently unveiled his buy area for Bitcoin.
“$25,000 – $28,000 is the sweet spot for longs for me, not longing before then. BTC.”
At time of writing, Bitcoin is hovering at $34,000, up 4% in the last 24 hours, according to CoinGecko.
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