dailyhodl.com
A closely followed crypto analyst is warning that Bitcoin ($BTC) may soon plummet into the $70,000 range.
In a new thread, crypto trader Justin Bennett tells his 115,800 followers on the social media platform X that Bitcoin may decline by more than 8% of its current value, hitting a 2023 trendline that coincides with a CME gap.
A CME gap is the difference between the Friday closing price of Bitcoin and the Monday opening price on the Chicago Mercantile Exchange.
“Bitcoin looks determined to close that $77,360 November CME gap, which could intersect with the September 2023 trendline. Probably some relief in March from this area, but the monthly chart looks toppy unless $BTC can miraculously close February above $92,000. The odds aren’t looking good.”
Bitcoin is trading for $84,837 at time of writing, down 2.2% in the last 24 hours.
The analyst is also keeping a close watch on the Tether dominance chart ($USDT.D) for signs of a possible bullish reversal for Bitcoin.
The $USDT.D chart shows how much of the crypto market cap is comprised of the stablecoin $USDT.
A bullish $USDT.D chart is generally considered bearish for Bitcoin and other cryptocurrencies as it indicates traders are unloading their crypto holdings in favor of the stablecoin.
“Want a clean view of where Bitcoin will likely get some relief in March? No guarantee we get there, but this $USDT.D channel has called the shots since 2022. A retest of channel resistance [around 5.90%] should offer relief for crypto. That’s what I’m eyeing as long as 4.97% holds as support.”
$USDT.D is 5.13% at time of writing.