A widely followed cryptocurrency analyst warns that Bitcoin (BTC) could drop to much lower levels, dropping to as low as $63,000.
Cryptocurrency trader Justin Bennett tells his 110,800 followers on social media platform X that Bitcoin could fall more than 18% from its current value.
“Bitcoin is still range-bound, but the recent collapse of the October 2023 trend line, combined with the imbalances on February 26 and 27, leads me to believe that the next price could be $52,000-54,000. Lots of liquidity is below the $56,500 low and markets are looking for liquidity. We can rule out a run above $72,000 to break these highs, but a downside seems more likely at the moment given the BTC chart and what is happening with the DXY. (Dollar Index) As always, it will be a level-by-level situation.
Source: Justin Bennett/X
Looking at his chart, the analyst suggests that Bitcoin could drop to the $60,751 level, bounce to around $63,000, and then collapse below $54,000.
The analyst further states that it appears that Bitcoin’s market high is around the $65,000 level on the monthly chart as it has failed to turn the area into support after multiple attempts since 2021.
“Anyone who is bullish on BTC here is bullish on resistance. I’ve been saying this for months and nothing has changed. Difficult, if not impossible, to argue otherwise. It’s never been about my hatred of Bitcoin or cryptocurrencies. I’m a crypto advocate since I got involved in 2020, but facts are facts. The charts don’t look great and the stock market is literally the only thing keeping cryptocurrencies from falling off a cliff.”
Source: Justin Bennett/X
At the time of writing, Bitcoin is trading for $63,671, down more than 1% in the past 24 hours.
Image generated: DALLE3
