More Pain Ahead As Seasoned Price Action Trader Sees Bitcoin Could Still Tumble Below $10k
Justin Bennett thinks there is more pain ahead for Bitcoiners.
Justin Bennett speaking to his YouTube subscribers on Tuesday revealed that there is a chance Bitcoin could still plummet to $8,500 as the leading digital asset is currently forming a bear flag chart pattern.
“There is a pattern that’s setting up now. You can see where we have a much smaller bear flag pattern that is developing… The objective, in this case, is right around $8,500. Just above $8,000,” the trader said.
Bennett goes on to warn his subscribers that the latest bear cycle is different from previous ones and, as such, had to be evaluated in a different light. The trader notes that this is the first time the crypto market has faced a harsh macroeconomic environment as inflation persists and recession looms as the Fed continues aggressive tightening.
“Anything you think you know or anything from previous cycles needs to be significantly thrown out the window or reevaluated. Because again, this is unlike anything we’ve ever seen,” Bennett explains.
It is worth noting that Bennett’s analysis shares a lot of similarities with that of veteran trader Peter Brandt in recent months. As reported by The Crypto Basic last Tuesday, Brandt had also observed a triangular flag pattern in Bitcoin’s daily chart with trend confluence pointing to a downward price continuation. However, unlike Bennett, Brandt sees the $13k price point as the next target should the price break downward.
The question of when Bitcoin will bottom or if it has bottomed has become the big question for Bitcoiners this year. Unfortunately, as is to be expected with questions like this, there are no clear answers.
While several analysts agree that the leading digital asset is close or is showing characteristics consistent with the last stages of a Bitcoin bear cycle, they also agree that there is no telling how long this last phase would last.
As reported by The Crypto Basic, BTC’s Previous Price Performance Suggests Bitcoin’s Bottom Sits Between $10K and $14K.
Peter Brandt also Said that Bitcoin May Dip to $12,700, chief strategist at InTheMoneyStocks predicted that Bitcoin Will Recover in 2-3 Years and May Crash To $10k. US Investment Bank Stifel Report pointed out 3 Macroeconomic Factors that Could Take Bitcoin To $10K.
It is worth noting that the crypto markets have rallied today as Bitcoin continues to hold on to the $20k support. The crypto market cap is up by 5.68% in the last 24 hours, sitting at around $935.69 billion, according to data from CoinMarketCap. Bitcoin is up 5.08% during the previous 24 hours, exchanging hands on mainstream crypto exchanges for $20,832.
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