Another corrective move looming for Bitcoin (BTC), top analyst predicts – here’s his outlook
A closely followed crypto strategist believes that Bitcoin (BTC) is preparing to liquidate both bulls and bears in the coming days.
Justin Bennett tells his 112,300 Twitter followers that there is a huge pool of short stops resting above the $30,000 level for BTC.
According to Bennett, it is within the realm of possibility for BTC to trade short above $30,000 to cash out early Bitcoin bears who believe the king crypt will descend in a straight line.
“Let’s see if BTC sniffs out the short liquidations above $30,000 this weekend.”
Although Bennett predicts a short-term rally for Bitcoin, he believes that BTC will witness a quick corrective move after the rally. The crypto strategist believes that BTC could fall as low as $26,800 before it bounces.
“Something like this from BTC wouldn’t surprise me after this week’s volatility.
Take shorts, then take longs.
Let us see.”
Bennett also shares a Bitcoin heatmap showing that many BTC bulls have placed long positions around the $26,000 price level.
At the time of writing, Bitcoin is trading at $29,272.
Looking at the total market capitalization of all crypto assets (TOTAL), Bennett says that TOTAL remains below the crucial $1.18 trillion level, suggesting that the broader digital asset market is still struggling to initiate a breakout – rally.
“TOTAL is one reason why I am not comfortable longing for crypto right now despite BTC closing back above $28,800.
TOTAL remains below the $1.18 trillion high after the recent divergence.”
At the time of writing, TOTAL hovers around $1.168 trillion.
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Featured image: Shutterstock/Emanuel Bustos
