A popular crypto strategist and trader says that a local bottom is on the horizon for Bitcoin (BTC) along with the rest of the crypto markets – but there’s a catch.
Analyst Justin Bennett tells his 100,600 Twitter followers that the Nasdaq (NDX) has recently broken down from an ascending channel, which he says does not bode well for Bitcoin.
“There goes NDX… which translates to the next leg down for BTC.”
Looking at Bitcoin, Bennett highlights that Bitcoin has also broken down from a rising wedge on the lower timeframe, suggesting that BTC is poised for a correction.
“BTC. Bitcoin.”
At time of writing, BTC is changing hands for $37,995, down 1.83% in the last 24 hours.
As for Ethereum (ETH), Bennett also says that Ethereum will likely follow the footsteps of BTC and head lower.
“ETH reversal right on cue.
Still looking for $2,500.”
At time of writing, Ethereum is valued at $2,772, down nearly 2% in the past day.
Although Bennett is predicting a pullback for Bitcoin and Ethereum, he notes that the next leg down will set up the crypto markets for a strong recovery.
“Still anticipating this from TOTAL.
Many will be calling for $30,000 and even $20,000 BTC during this next leg lower.
But the majority is usually wrong.
Eventually, yes, but probably not when most expect.”
The TOTAL chart tracks the collective market capitalizations of all crypto assets. Looking at Bennett’s chart, he predicts a sharp rally for the crypto markets after tagging the diagonal support of the channel.
During the bounce, Bennett says he sees BTC rallying to $52,000 with Ethereum recovering the $4,000 level. He also highlights that the rally will likely begin in the coming days.
“Many of the chart structures I’m tracking point to a potential May 4th bottom.
May 4th is the next Fed meeting, and we just got the first negative US GDP print since 2020.
Down until then, and a more dovish Fed sparks a relief rally from stocks and crypto?
Likely.”
Once the relief rally is over, Bennett predicts a massive correction for the crypto markets and a final bottom by May 2023.
“Anticipated cycle low for TOTAL (total crypto market cap) is $760m. Lower if we don’t get one last relief rally.”
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