A widely followed crypto analyst is issuing a warning on Bitcoin (BTC), saying that it could dip further if bulls lose momentum.
In a new thread on the social media platform X, crypto trader Justin Bennett tells 115,500 followers that the flagship digital asset could fall all the way back down to $85,000 if BTC bulls fail to reclaim the $102,000 level.
According to Bennett, Fed Chair Jerome Powell’s recent announcement that the Federal Reserve isn’t allowed to hold BTC not only triggered a crash in the crypto markets, but also the stock market as well.
“Looks like we’re heading lower after BTC failed to hold above $102,000. I know everyone is expecting crypto to move back up tomorrow, and maybe it does, but this isn’t isolated to the crypto market.
Powell’s signaling on Wednesday triggered a stock market rout, with the Nasdaq dropping 3.6% in a single day, the DXY (US Dollar Index) surging 1.2% and breaking the 108.00 key level, and bond yields rallying 3% to fresh seven-month highs. It’s risk-off until proven otherwise.
As for Bitcoin, $102,000 is the level to reclaim. If bulls can’t do it, the bottom of this channel is next, with a break there opening the door to $91,600 and $85,000.”
However, the crypto strategist says that he doesn’t quite believe the BTC bull market will end if BTC fails to hold the support level at $102,000 as the flagship digital asset routinely drops 20-30% during its bull runs.
“The bull market isn’t over [in my opinion]. We know Bitcoin has several 20-30% pullbacks in every bull market, which will be no different this time. The 2024/2025 holiday sale starts in a few weeks. Get ready.”
According to Bennett, if BTC truly wants to break out, it needs to decouple itself away from stocks, which appear ready for the next leg down.
Bitcoin is trading for $100,838 at time of writing, a 3% decrease during the last 24 hours.
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