A well-known crypto strategist warns holders of bitcoin (BTC) and ethereum (ETH).
Cryptocurrency analyst Justin Bennett tells his 106,800 Twitter followers that the recent selloff in the stock market suggests an imminent downside move for bitcoin.
“Today’s stock sell-off is more than just a red day. This confirms the massive fake, which probably provoked a prolonged decline. A maximum of 3400 before COVID is the main goal. I’ve been talking about this since May. This would be -16% for the S&P 500, or around -30%-40% for BTC if that happens. »
At the time of writing, Bitcoin is trading at $20,049. In the event of a 40% devaluation, Bitcoin could trade at $12,000.
Taking a closer look at Bitcoin, Bennett says BTC is in danger of breaking below the diagonal support that has supported the best cryptocurrency since 2015.
“BTC is testing the 2015 trendline again. Anyone who tells you this looks great is either clueless or lying. Pay attention to the two lower long wicks of 2015 and 2020. This indicates high demand. This time we see the exact opposite of that. »
Regarding Ethereum, Bennett notes that ETH is forming a head and shoulder top on the four-hour chart with a $1,000 downside target.
“The right shoulder of this potential ETH head and shoulders is starting to form. Confirmation less than $1500. »
As of this writing, Ethereum is trading against $1,498, below the pattern’s neck line and Bennett’s confirmation level.
Be vigilant and consult your financial advisor before making any investment decision. Mirror-Mag cannot be held responsible for unsuccessful investments. Before using any third party service, you should do your own research.
Passionate about cryptocurrencies and DeFI, Thomas brings international news on the subject!