Crypto analyst Justin Bennett is predicting a breakout in prices for altcoins after a long and quiet period of consolidation.
Bennett tells his 109,900 Twitter followers that the overall market cap for altcoins has been coiling in a long wedge pattern, hinting at a massive imminent move.
“This quiet period for crypto is about to end. The longer a market coils, the more explosive the breakout. Get ready.”
Bennett backs up his bullish position by suggesting that the US Dollar Index (DXY) is on the verge of breaking out. The DXY pins the US dollar against a basket of other fiat currencies, and a falling DXY traditionally suggests upside for risk assets like crypto.
According to Bennett, DXY could be in the process of being rejected at the top of a large ascending channel.
“DXY linear chart. Not the best time to be bearish on stocks and crypto, in my opinion.”
Benett says Ethereum (ETH), the world’s second-largest cryptocurrency, is also making a break against its resistance around the $1,300 level in a descending channel.
“ETH support is still holding. Now testing channel resistance.”
Looking at the S&P 500 (SPX), which has been correlated with crypto markets for the last several years, Bennett says that if the $3,575 level holds, a rally could ignite and potentially boost crypto as well.
The analyst is looking at the upcoming consumer price index (CPI) reading for a potential catalyst for the market’s next move.
“Not difficult to imagine a relief rally from here, but a lot is riding on Thursday’s CPI.
3,575 is the level to hold.”
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