Crypto Analyst Issues Bitcoin Warning, Says It May Be Time For BTC Pullback After 25% Rebound
A closely followed crypto analyst is warning that a Bitcoin (BTC) correction could be looming after the crypto king’s strong performance last week.
In a new blog post, trader Justin Bennett says that BTC has embarked on an “impressive” rally since June 15, up about 25% in just under two weeks.
However, Bennett says bitcoin could soon give back some of its gains as he believes the crypto king is not giving free rides to those who jumped on the rally too late.
“If so, a pullback to the $28,000 area seems likely to flush late BTC long positions.
How bitcoin price action plays out at $27,000-$28,000 if and when tested will determine where BTC heads in July.”
According to the crypto strategist, if Bitcoin manages to clear its immediate resistance at $31,000, his short-term bearish view would be invalidated.
“Alternatively, a sustained break above $31,000 would suggest the bulls remain in control and abandon $32,500.”
Source: Justin Bennett/DailyPriceAction
At the time of writing, Bitcoin is trading at $30,802.
Bennett also keeps an eye on the Tether dominance chart (USDT.D), which tracks the percentage of crypto equity stored in the USDT stablecoin. Traders are watching the Tether dominance chart as bullish moves suggest market participants are dumping their crypto stacks to protect the value of their stablecoin equity.
Bennett tells his 112,400 Twitter followers that a move above the 8% level for USDT.D could put BTC at risk of a significant correction.
“Watch for a move towards the 8% mark, which represents a roughly 10% drop for Bitcoin.”
Source: Justin Bennett/Twitter
At the time of writing, USDT.D is trading at 7.23%.
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