A popular crypto trader warns Bitcoin (BTC) could nosedive as the crypto market encounters severe macroeconomic headwinds.
Crypto analyst Justin Bennett tells his 10,600 YouTube subscribers that a bearish flag pattern forming on Bitcoin’s chart suggests the leading digital asset could plunge to a price target of around $8,500.
“There is a pattern that’s setting up now. You can see where we have a much smaller bear flag pattern that is developing…
The objective in this case is right around $8,500. Just above $8,000.”
Bennett says drawing a trend line starting from the high of 2017 to the present also suggests Bitcoin could plunge to under $10,000.
“If we draw a trend line off of the previous cycle peak, off of this high back here, you can see that we do get an area between $8,000 and $9,000.
Now I realize that this trend line is not all that significant. However, what I do find interesting is the fact that BTC has every single cycle put in a trend line similar to that.”
The crypto trader says that unlike in previous cycles, the crypto market is in an uncharted territory as it has never faced the prevailing macroeconomic conditions before.
“We have to remember that this bear market is unlike any other. Because in previous bear markets for Bitcoin and the rest of the crypto market, stocks were in an uptrend. Yes, they had pullbacks along the way but for the most part, they were in an uptrend.
We were not facing high inflation and the Fed was generally accommodative throughout that entire period.
However, what we’re dealing with right now is very different from anything that crypto has been through in the past decade. Because right now we have inflation hitting 40-year highs, we have the Fed tightening. In fact, it’s the most aggressive tightening that we’ve ever seen from the Fed
And furthermore, the world is facing a recession. And crypto has never been through a global recession. It wasn’t even around during the 2008-2009 great financial crisis.
Anything that you think you know or anything from previous cycles really needs to be thrown out the window or reevaluated significantly. Because again this is unlike anything we’ve ever seen…
This is unlike anything we’ve ever seen before. It’s uncharted territory.”
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