Bitcoin and other cryptocurrencies started the week with sharp drops. For this reason, many investors have a question mark on whether BTC will rise or not. They are curious about the comments of analysts. In this article, we will describe various scenarios presented by analyst Justin Bennett for Bitcoin. Here are the details…
Justin Bennett reveals his $5,000 scenario for Bitcoin
Closely followed crypto strategist Justin Bennett explains the worst-case scenario for BTC. Justin Bennett told his 108,800 Twitter followers that Bitcoin has potentially created a massive bearish pattern. He even talked about the magnitude of the probability that this bearish pattern will push BTC closer to 2018 bear market lows. The analyst used the following statements:
Since the end of May, BTC has formed a descending triangle. The purpose of this pattern is $5,000. Yes, $5,000. This is probably the worst case scenario for Bitcoin. Before that comes $12,000. But don’t rule out these levels either.
Analyst drew attention to futures transactions
Bennett also says that while the model’s target is $5,000, that doesn’t necessarily mean BTC will drop here. The analyst points out that if investors apply a percentage target instead of a price target, they can achieve different results. “You will get a target of around 11,000 BTC, which is very close to the $12,000 support,” the analyst says, as a result of this kind of practice. However, the analyst thinks that in both cases, we will see lower levels before the end of the year.
So Bennett is in a long-term bearish trend in Bitcoin. However, he says that traders are largely shorting BTC. That’s why this week draws attention to the possibility of a bounce. The analyst uses the following statements:
BTC shorts have resurfaced, which means more short liquidations above $20,200. If we see the Bitcoin rally as I predicted, it will add more fuel to the process… Fraud pumps may last longer than most people think. Those who pile on BTC shorts at every sign of weakness will learn this the hard way.
BTC and other cryptocurrencies continue to decline
Meanwhile, the value of BTC and other coins continues to decline sharply. The global cryptocurrency market experienced a significant breakout last week despite the historic Ethereum (ETH) merge event. According to the data, the global crypto market has fallen below the critical psychological threshold of $1 trillion. Notably, the last time the market recorded such lows was a little less than two months ago – it was on July 14, 2022. Despite being in a broader bear market, the overall market cap of cryptocurrencies has been struggling to keep support above $1 trillion during this time.
