Crypto analyst Justin Bennett has laid out a bearish narrative for the flagship crypto token Bitcoin. Based on his analysis, Bitcoin will likely drop below the $50,000 level again before it moves further to the upside.
Bitcoin Could Drop Back To As Low As $47,000
In an X (formerly Twitter) post, Bennett mentioned that the price range between $47,000 and $49,000 “is the land in the sand” for Bitcoin. This statement came from his belief that the crypto token will soon see a price retracement. He also reminded his followers of how “Bitcoin carves significant tops.”
The crypto analyst suggested that $52,000 was a ‘significant top’ and that a price correction could be imminent. Bennett added that his prediction could be invalidated if BTC saw a sustained break above $53,500. Meanwhile, he also compared Bitcoin and US stocks, stating that there was an ongoing correlation between them.
Bennett also disagrees that Bitcoin’s rally could be longer this cycle, especially considering the demand that the Spot BTC ETFs are seeing. He stated his indifference about these funds and mocked how everyone predicted they would send Bitcoin to a potential all-time high (ATH).
From a technical analysis perspective, the crypto analyst was more concerned about BTC’s price action and remarked that “the chart will tell the story.”
BTC Fundamentals Are Getting Stronger
While Bennett predicts that Bitcoin will drop soon enough, it is worth mentioning that the crypto token’s fundamentals are getting stronger, which could also dictate its price action. Citing data from Glassnode, crypto analyst Ali Martinez recently revealed that the amount of BTC held in known crypto exchange wallets has dropped to its lowest in six years.
As highlighted by Martinez, this suggests that the market sentiment around the flagship crypto is changing, with most investors looking to hold for the long term.
That is considered a positive development and bullish for Bitcoin’s price since the amount of BTC that can be acquired is further reduced, creating some form of scarcity.
The crypto analyst had also recently mentioned how Bitcoin holders are currently in a phase of belief, which signals potential further gains ahead for BTC.
According to CoinMarketCap data, Bitcoin is trading at around $51,900 at the time of writing, up over 2% in the last 24 hours.
Chart from Tradingview
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Source: NewsBTC.com
