A crypto trader warns Bitcoin (BTC) could hit lower lows as a stock index tracking the performance of the 500 largest US public companies worsens.
Crypto analyst Justin Bennett tells his 10,400 YouTube subscribers that Bitcoin could continue sliding downwards if the S&P 500 officially turns bearish.
“If we see a bear market, a true bear market for the S&P 500 and we enter a recession which I personally think that we’re already in a recession, then we could very well see the S&P 500 drop 30%, 40%, if not 50%.
And look, if BTC is hovering around $20,000 while the S&P 500 is off its all-time high by just 19%, then what happens if the S&P 500 is off by 30% or 40% or 50%?
We’re going to see Bitcoin a lot lower than $20,000. I can pretty much guarantee you that now.”
Bitcoin is trading at $20,016 at the time of writing, down a little over 1% on the day.
According to Bennett, the S&P 500 index, which has demonstrated a strong correlation with Bitcoin since the market downturn started, has yet to enter bear market territory.
“Bitcoin and the S&P 500 have been tracking each other ever since this sell-off started. And right now BTC is off its all-time high by quite a bit but the S&P 500 is only off its all-time high by 19%. Twenty percent is the start of a bear market, so 19% is nothing.”
Despite Bitcoin falling below $18,000 before quickly recovering, the crypto analyst does not believe the bottom has been reached.
“First and foremost, we obviously have this ascending channel that formed here off of the recent low, down here around $17,600.
Now I know a lot of people think that this is the macro bottom for BTC. I tend to disagree with that and I think a lot of people think this is the bottom because for a long time everybody was thinking that if we did see a bear market we’d see Bitcoin around $20,000 and then we would see a bounce.”
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