A cryptocurrency trader has warned that Bitcoin (BTC) will continue to see lows. As it is known, BTC has upset its investors as it has already dropped below $ 20,000. So what to expect now? Here are the details…
Bitcoin will drop far below $20,000
Cryptocurrency analyst Justin Bennett has warned that Bitcoin (BTC) could plunge lower as a stock index tracking the performance of the US’s 500 largest public companies worsens. Crypto analyst Justin Bennett told 10,400 YouTube subscribers that Bitcoin could continue to slide down if the S&P 500 officially falls. Bennett explained how this will affect BTC with the following statements:
If we see a bear market, that is, a real bear market for the S&P 500, and we get into a recession that I personally think we’re already in, then we might see the S&P 500 fall 30, 40 percent, if not 50 percent. Look, BTC started hovering around $20,000 as the S&P 500 dropped just 19 percent from its all-time high. So what if the S&P 500 drops 30 percent or 40 percent or 50 percent? We will see Bitcoin well below $20,000. I can almost guarantee you that.
What region is the S&P 500 index in right now?
According to Bennett, the S&P 500 index, which has been strongly correlated with Bitcoin since the market downturn began, has yet to enter bear market territory. Although BTC dropped below $18,000 before quickly recovering, the crypto analyst does not believe the bottom has been reached. The analyst uses the following statements:
Bitcoin and the S&P 500 have been following each other since this sale started. And right now, BTC is a significant amount away from its all-time high. But the S&P 500 is only 19 percent off its all-time high. Twenty-one percent is the start of a bear market. So 19 percent is nothing. First of all, we have an ascending channel formed here near the recent low of $17,600.
At the time of writing, Bitcoin is changing hands at $19,184, up 0.4%. Finally, Bennett uses the following statements regarding the bottom expectation of users:
I know now that a lot of people think this is the macro bottom for BTC. I tend to disagree with that, and I think a lot of people think it’s a bottom because for a long time everyone thought that if we see a bear market, we’ll see Bitcoin around $20,000 and then we’ll see a bounce.
