A crypto strategist who continues to build a following with timely Bitcoin calls warns that BTC could be on the verge of a deep sell-off event.
In a new strategy session, analyst Justin Bennett says that Bitcoin has broken below its diagonal support that has kept BTC bullish over the last few months.
According to Bennett, the breakdown is reminiscent of Bitcoin’s correction in May and June of this year.
“Right now, it looks nearly identical to what we’ve seen Bitcoin do two times in the past few months and that is break below a bear flag.”
According to the crypto analyst, the last two times Bitcoin broke below a bear flag, BTC dropped over 30%.
Although Bennett is bearish on BTC, he predicts a short-term rally to $23,000 to retest it as resistance before moving all the way down to $19,000. According to the strategist, Bitcoin’s reaction at $19,000 will likely determine how BTC will perform toward the end of the year.
“If we turn on the visible range, which simply shows the volume by price, you can see that we have two main clusters here: one at current levels right around $21,000 and the other up around $23,000 or just below…
For Bitcoin, the $19,000 is going to be absolutely critical over the coming weeks. That’s going to decide whether we see a bounce there and a higher low or if we get a lower low into the rest of the year.”
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