As the crypto markets plunge alongside stocks and equities, analyst Justin Bennett says he plans on flipping bullish on Bitcoin once it drops to a certain price level.
Expecting a big bounce, the closely followed analyst says he’ll turn net long on BTC when it reaches the $39,000 level, which is about 10% below the current price.
“As bearish as I’ve been lately (and rightfully so), I do plan on flipping from net short to long near $BTC $39,000 if we get it.
I’m anticipating a decent bounce from there, and I’ll be well positioned in the event the macro picture turns bullish again.”
Bennett has his eye on the US dollar index (DXY) – the USD versus a basket of other major currencies – as a potential catalyst for a further correction in BTC. Typically, a stronger DXY can correlate with many asset prices weakening.
“$DXY is already testing 93.40.
Break that, and 94.60 is next.”
According to the analyst, Bitcoin has a strong correlation with the dollar index.
“And the next time someone tries to tell you there’s no correlation between BTC and DXY, tell them they’re wrong.”
Bennett also posits that Bitcoin could be replicating its price action from April to May of this year just before BTC tumbled from $58,000 to $30,000.
“April – May on the left.
September on the right.
$BTC”
At time of writing, Bitcoin is trading at $43,944, down 8% on the day according to CoinGecko.
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