A widely followed crypto analyst is updating his outlook on the markets after a huge week of gains for digital assets.
Crypto trader Justin Bennett tells his 112,400 Twitter followers that now is not the time to go long on Bitcoin (BTC).
“BTC most likely a flush of late longs here.
Def not where you want to be longing Bitcoin, in my opinion.”
In the context of trading, a “long” refers to a position that is expected to increase in value. A trader who is “long” on an asset is betting that the price of the asset will go up.
BTC is worth $30,563 at time of writing, up over 19% in the last week.
Next, Bennett looks at the US dollar index (DXY), a measure of the value of the US dollar against a basket of six major currencies. When the DXY is strong, it is often seen as a sign that the US economy is strong and that the US dollar is a safe haven asset. This can lead to selling pressure in cryptocurrencies, as investors move their money into the US dollar.
According to Bennett, the DXY is about to get even stronger.
“Get bearish on the DXY if you’d like.
I still think we get a rally to fill last year’s imbalance at 109-110.”
Finally, Bennett looks at two major stock indices – the Dow Jones Index (DJI) and the S&P 500 Index (SPX). When looking at the two traditional stocks, Bennett seems to indicate that he’s betting on weakness in the short term.
“Not a good look for stocks if the Dow Jones can’t hold this level…
SPX is still coming off channel resistance at 4,430.Â
Would love to see a break below 4,325 to confirm the fakeout and give us a nice risk-off move to play next week.”
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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.
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