Crypto Analyst Warns Of Bitcoin Downturn, Cites Tether Trends

Cryptocurrency analyst Justin Bennett has warned about a possible downturn in Bitcoin's BTC/USD value.

Last Friday, in a post on X, formerly Twitter, Bennett suggested that Bitcoin may not have reached its market bottom yet. His prediction was based on the Tether dominance chart USDT/USD, which he believes is a crucial indicator for forecasting Bitcoin's trajectory.

“The bottom is not in for BTC IMO (in my opinion). Maybe we see a mid $44,000 retest, but even markets like Tether dominance USDT.D are signaling another leg lower. This moves inversely to Bitcoin,” he said. 

The bottom is not in for $BTC IMO.

Maybe we see a mid $44k retest, but even markets like Tether dominance $USDT.D are signaling another leg lower.

This moves inversely to #Bitcoin https://t.co/E05Vu2oTVW pic.twitter.com/90ARPDbecp

— Justin Bennett (@JustinBennettFX) February 2, 2024

The USDT chart, which tracks the market cap share of the stablecoin Tether (USDT) in the crypto market, is often seen as a bearish signal for Bitcoin when it rises.

This trend suggests a move away from volatile cryptocurrencies to the more stable USDT. Bennett's interpretation of this trend indicates a potential decline for Bitcoin, which is currently priced at $42,979 at the time of writing.

Also Read: Bitcoin Primed To Explode By Over 400%, Says Crypto Analyst

Additionally, Bennett noted similarities between the current SPX trends and Bitcoin's behavior during its 2021 peak, suggesting possible implications for Bitcoin's future movements.

“SPX vs 2021-2022 BTC top. The moment of truth is coming up, and the 5,000 psychological number is less than 1% away. Not calling for a top, just sharing an observation,” Bennett said in the post. 

$SPX vs 2021-2022 $BTC top.

The moment of truth is coming up, and the 5k psychological number is less than 1% away.

Not calling for a top, just sharing an observation. pic.twitter.com/HZeOMmtf0M

— Justin Bennett (@JustinBennettFX) February 2, 2024

Earlier in Dec, Bennett suggested that Bitcoin could be heading toward a bearish trend, potentially dropping to the $38,000 mark.  

Now Read: Here's Why One Analyst Says The Worst For Bitcoin May Not Be Over

Photo: Shutterstock