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Cryptocurrency analyst Justin Bennett is cautioning about a potential correction in Bitcoin's trajectory following a substantial upward trend. Bennett highlights a possible bearish trend shift for , suggesting a downside movement towards the $38,000 level. He emphasizes the significance of Bitcoin staying below $43,300, indicating the formation of a potential lower high in price. Bennett observes this as exerting pressure on the trend line support and forecasts a probable descent to $38,000 upon a sustained breach. Throughout the week, Bennett has been drawing attention to various indicators signaling a bearish outlook for Bitcoin. One such aspect he monitors closely is the dominance chart (USD.T), which tracks the proportion of the crypto market held by USDT. Bennett anticipates an increase in USDT.D, interpreting it as a bearish sign indicating a potential shift in traders favoring the stablecoin over crypto holdings. Additionally, he notes resistance encountered by the total market capitalization of digital assets (TOTAL), suggesting a downward influence on Bitcoin. Highlighting the significance of support levels, Bennett underscores the possibility of Bitcoin encountering further downside if it fails to hold at $38,000, identifying the subsequent support level at $32,000. In anticipation of the Federal Open Market Committee (FOMC) meeting, Bennett suggests a likely range formation with a prospective retest at $48,000 before a more substantial correction. However, he emphasizes the critical nature of maintaining $37,800 on high time frames, warning of a potential dip to $32,000 if this level is breached.
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