Crypto analyst and trader Justin Bennett is warning that Bitcoin (BTC) still could undergo a massive market crash this cycle.
Bennett tells his 110,700 followers on the social media platform X that the crypto king could decline by more than 74% from its current value if a black swan event triggers a severe correction.
[adinserter block="1"]According to the strategist, there still exists the possibility that Bitcoin repeats a similar price pattern in 2020 when the crypto king plummeted at the start of the COVID-19 pandemic.
“$10,000-$15,000 BTC is still in the cards, IMO (in my opinion). Sure, COVID was a black swan, but it’s not like we don’t have a laundry list of systemic issues to choose from this time around. The chart speaks for itself.”
Looking at his monthly chart, the trader suggests that Bitcoin could collapse down to the diagonal support level that Bitcoin touched during the pandemic after facing resistance at the Fibonacci retracement level of 0.768.
The trader also believes Euro’s performance against the U.S. dollar (EUR/USD) suggests Bitcoin and the broader crypto market is in a downward trend.
“The fiat currency market is once again flashing warning signs about what could be next for Bitcoin and the rest of the crypto market.”
He is also warning that Bitcoin’s upcoming halving event in April may not be a catalyst for a rally if there are unfavorable macroeconomic conditions.
“Bitcoin is programmed to go up because of the halving, right? Wrong… The halvings are a critical component of the tokenomics that make Bitcoin an incredible long-term hold. But economic data rules all in determining cycle tops and bottoms.”
Lastly, the trader says that Ethereum (ETH) may be in a downtrend after failing to hold the key $2,400 level as support.
“ETH failed to hold above $2,400, so that’s now resistance. It’s still my very unpopular opinion that the top is in for crypto.”
Looking at his chart, the trader suggests that Ethereum could correct to $1,450 by May.
Ethereum is trading for $2,213 at time of writing, up nearly 1% in the last 24 hours.
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