A closely tracked market analyst is predicting a significant pullback for Bitcoin (BTC) and altcoins, which he says could drive the value of all crypto assets below the $1 trillion level.
Justin Bennett tells his 101,000 Twitter followers that the TOTAL chart, which tracks the market capitalization of all cryptocurrencies, is in the midst of a breakdown from a bearish continuation pattern.
“It doesn’t get much cleaner than this. Today’s breakdown from TOTAL opens up the $1 trillion psychological level. The actual objective is $950 billion to be exact.”
According to the crypto strategist, the $1 trillion price area offers a crucial support level for the entire digital asset markets.
“[The] $1 trillion [level] was also the most heavily traded level during the early 2021 consolidation.”
Should the TOTAL chart follow Bennett’s script, he says altcoins will take the brunt of the correction.
“Bottom line: another 15% lower from the entire crypto market seems likely before we can start talking about the potential for relief. Remember that BTC will be the closest to that -15% mark. Alts, especially lower caps will probably outpace it by 1.5-2x.”
At time of writing, Bitcoin is changing hands for $27,885. A 15% corrective move could take Bitcoin to a fresh yearly low of $23,500. Meanwhile, altcoins could lose anywhere between 22.5% to 30% of their value, according to Bennett.
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