A widely followed crypto analyst is expressing mixed feelings on what the next big move for Bitcoin (BTC) might be.
Crypto trader Justin Bennett warns his 112,200 Twitter followers that BTC may be in for a sizeable drop after its recent pump based on the price action of the S&P 500 (SPX).
“For everyone getting mega bullish on BTC again (majority of crypto Twitter).
Ask yourself this…
How long can Bitcoin rally while the SPX looks like this?
Not saying we can’t see another rip from BTC, but if equities can’t bounce soon, this will eventually drag crypto with it…
The last time BTC pumped while SPX puked was mid-February, right before a 22% drop.
So this Bitcoin pump could be short-lived unless equities find a bottom soon.
Don’t say I didn’t warn you.”
Looking at the king crypto’s recent price movements, Bennett calls BTC’s latest peak nothing more than a “fakeout.”
“What a fakeout.
Do I even have to say what comes next?”
However, even though he implied above that BTC was in for a big drop, Bennett recently gave his followers another update where he seems to suggest that BTC may not crash after all.
“Did everyone survive? It usually takes a few days after volatility like this to find resolution, so be careful out there. I still think we see lower, but I could be wrong.”
Bennett also takes a look at the US Dollar Index’s (DXY) relative strength indicator (RSI). The DXY is a measure of the value of the US dollar relative to a basket of assets, and the RSI is a technical indicator used in trading to measure the strength of an asset’s price action. According to Bennett, the DXY’s RSI looks bullish, though he does not clarify if he believes the RSI looks bullish for the DXY or BTC.
“RSI isn’t part of my trading strategy, but the DXY daily RSI looks interesting.
We still need a break of this trend line and a higher high from the dollar, but the RSI looks tentatively bullish for now.
Let’s see.”
BTC is worth $29,098 at time of writing, down 0.4% over the last 24 hours.
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