Crypto Markets Nosedive – Here’s How Far Bitcoin Can Fall Before Analyst Justin Bennett Flips Bullish on BTC

Crypto Markets Nosedive – Here’s How Far Bitcoin Can Fall Before Analyst Justin Bennett Flips Bullish on BTC

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September 20, 2021 by J.D. Smith
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As the crypto markets plunge alongside stocks and equities, analyst Justin Bennett says he plans on flipping bullish on Bitcoin once it drops to a certain price level. Expecting a big bounce, the closely followed analyst says he’ll turn net long on BTC when it reaches the $39,000 level, which is about 10% below the

As the crypto markets plunge alongside stocks and equities, analyst Justin Bennett says he plans on flipping bullish on Bitcoin once it drops to a certain price level.

Expecting a big bounce, the closely followed analyst says he’ll turn net long on BTC when it reaches the $39,000 level, which is about 10% below the current price.

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“As bearish as I’ve been lately (and rightfully so), I do plan on flipping from net short to long near $BTC $39,000 if we get it.

I’m anticipating a decent bounce from there, and I’ll be well positioned in the event the macro picture turns bullish again.”

Bennett has his eye on the US dollar index (DXY) – the USD versus a basket of other major currencies – as a potential catalyst for a further correction in BTC. Typically, a stronger DXY can correlate with many asset prices weakening.

“$DXY is already testing 93.40.

Break that, and 94.60 is next.”

Source: Justin Bennett/Twitter

According to the analyst, Bitcoin has a strong correlation with the dollar index.

“And the next time someone tries to tell you there’s no correlation between BTC and DXY, tell them they’re wrong.”

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Source: Justin Bennett/Twitter

Bennett also posits that Bitcoin could be replicating its price action from April to May of this year just before BTC tumbled from $58,000 to $30,000.

“April – May on the left.

September on the right.

$BTC”

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Source: Justin Bennett/Twitter

At time of writing, Bitcoin is trading at $43,944, down 8% on the day according to CoinGecko.

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Featured Image: Shutterstock/Ellerslie

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