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.
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Featured Image: Shutterstock/PHOTOCREO Michal Bednarek
