A Chart Suggests Bitcoin Could Dip Double Digits, Crypto Analyst Warns – Here Are His Targets
Crypto analyst and trader Justin Bennett warns that Bitcoin (BTC) has probably not yet reached the final stages of its correction.
Bennett tells his 110,800 followers on social media platform X that the Tether dominance chart (USDT.D) is bearish for Bitcoin.
Traders often keep an eye on the USDT.D chart as it shows how much of the crypto market cap is made up of stablecoin Tether (USDT). A bullish USDT.D chart is traditionally interpreted as bearish for Bitcoin and other cryptocurrencies because it suggests traders are dumping their crypto holdings in favor of the stablecoin.
Bennett predicts that USDT.D will continue to rise after recovering from a critical support level.
“Another 20% lower for BTC from current levels?
This is what the Tether dominance USDT.D chart suggests. This is the opposite of Bitcoin, and the levels on this chart have been spot on since October. This would mean BTC would cost around $30,000. Let's see.”
He also says his prediction holds despite Bitcoin's recent surge to around $42,000. He thinks Bitcoin could see a relief rally to around $46,000 before falling to its downside target.
“I have been sticking with the same BTC plan since the sell-off on January 12th. The key to relief was/is a recovery of $41,240.
Fill the imbalance before lowering it.
Let's see.”
Bitcoin is trading for $41,851 at the time of writing, up more than 4% in the last 24 hours.
Bennett also keeps a close eye on the U.S. Dollar Index (DXY), a measure of the value of the U.S. dollar against a basket of six major currencies.
According to Bennett, DXY appears primed for a bullish reversal.
“DXY is still fluctuating and I am still optimistic, as I have been since January 2nd. 103.50 and 104.20 are resistance levels. A sustained break above 104.20 in the coming weeks would reverse the recent trend from a downtrend to an uptrend, putting pressure on risk assets such as stocks and cryptocurrencies.
Invalidity if sustained break below 102.60.”
Source: Justin Bennett/X
A strong DXY suggests that investors are shifting their money into the US dollar and away from risk assets like Bitcoin.
At the time of writing, DXY is at 103.47.
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