Crypto analyst Justin Bennett has cautioned that Bitcoin BTC/USD could potentially plummet to significantly lower levels.
What Happened: On Thursday, Bennett, who boasts a following of over 110,800 on social media platform X, formerly Twitter, said that Bitcoin could see a decline of over 18%.
He stated, “Bitcoin is still range-bound, but the recent breakdown of the October 2023 trendline, combined with the February 26th and 27th imbalances, leads me to believe $ 52,000-$54,000 could be next,” adding, “A lot of liquidity is sitting below that 56,500 low, and markets seek liquidity.”
His analysis suggests that Bitcoin could drop to the $60,751 level, bounce to around $63,000, and then collapse to below $54,000.
Bennett also noted that Bitcoin’s market top appears to be around the $65,000 level on the monthly chart, as it has failed to flip the area into support after multiple attempts since 2021.
Why It Matters: Predictions of Bitcoin’s potential decline come on the heels of a significant sell-off by Bitcoin whales, who offloaded more than $1 billion worth of Bitcoin in the past fortnight. This sell-off, likely through brokers, indicates a lack of demand growth from large Bitcoin holders and a continued slowdown in stablecoin liquidity.
However, despite the current bearish outlook, Bernstein analysts maintain a bullish $200,000 Bitcoin target for the end of 2025. They believe that spot Bitcoin ETFs are on the verge of gaining approval at major wirehouses and large private bank platforms in the third or fourth quarters of this year.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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