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.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Andrey Suslov
