A closely followed crypto analyst and trader is warning that Bitcoin (BTC) is at high risk of a deeper correction.
In a new post, crypto trader Justin Bennett tells his 115,900 followers on the social media platform X that Bitcoin’s market structure is weakening as it fails to regain $92,000 as support.
“How do some people still not get it? Bitcoin closed February below $92,000. That happened. There’s nothing else to wait for. So far, March has found resistance there. As long as BTC is below $92,000 on a monthly closing basis, there’s every reason to be cautious on a macro level.”
The analyst says even if Bitcoin shows some market strength this month, if it fails to close March above $92,000, the flagship digital asset remains at risk of a collapse.
“Nice reclaim of BTC $81,500 + retest. US CPI (Consumer Price Index) came in lower than forecast after some hot January numbers, so most likely some relief from risk assets. I can see $88,000 and possibly a $92,000 sweep, but from there, all eyes shift back to the February breakdown I’ve discussed.”
Bennett also says that based on Bitcoin’s historic correlation with the performance of stocks, a market bottom is not likely yet in for BTC as the S&P 500 is correcting.
“And if the S&P monthly structure since the Great Financial Crisis (that I’ve shared 117 times) is any indication, we still have a ways to go before we can start talking about a meaningful bottom.”
Bitcoin is trading for $80,916 at time of writing, down 3.2% in the last 24 hours.
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