Get the scoop on finance - sign up for mobile alerts
Bitcoin
| On
February 10, 2023

Top Trader Shares Chart With ‘Huge Implications’ for Crypto, Breaks Down Bitcoin Volume

By Daily Hodl Staff

One widely-followed crypto analyst is looking at traditional stocks with “huge implications” for crypto traders.

Analyst Justin Bennett tells his 111,400 Twitter followers that the outcome of the current triangle pattern on the Dow Jones Industrial (DJI) could affect crypto in 2023.

ADVERTISEMENT

“This is the DJI triangle that could have huge implications for stocks and crypto this year. 

Still coiling. Blue levels are the measured objectives depending on the direction it breaks.”

Source: Justin Bennett/Twitter

Next, Bennett breaks down Bitcoin (BTC) volume levels. The trader says recent BTC price movements were foreshadowed by volume weakness.

“Sometimes all you need is volume.

ADVERTISEMENT

The recent bearish divergence between the higher highs from BTC and lower highs from volume signaled weakness. 

That was a massive foreshadowing of this week’s drop.”

Source: Justin Bennett/Twitter

Bennett also says BTC’s volume levels preceded similar volatility in April 2021.

“And this isn’t the first time Bitcoin has warned us via a drop in volume. 

Even the April 2021 peak was foreshadowed by a decline in volume for three straight months.

ADVERTISEMENT

I tweeted about this in late April.”

Source: Justin Bennett/Twitter

Though a drop in volume doesn’t always indicate a price drop, Bennett says it’s a metric for traders to keep an eye on.

“You won’t always get a drop in volume to warn of an upcoming correction. But when you see a market making higher highs and volume making lower highs for two weeks or longer, it’s time to pay attention.”

BTC is worth $21,652 at time of writing, down 4% on the day.

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney