A closely followed crypto strategist believes that the current Bitcoin pullback is setting up BTC for a move to new record highs.
Analyst Justin Bennett tells his 115,000 followers on the social media platform X that BTC’s retracement will likely drive traders to believe that the bull market is over.
According to the analyst, he expects Bitcoin to correct below $100,000 before it ignites a fresh leg up en route to $120,000.
“This is the part where everyone gets super bearish, expecting a 2021-style macro top.
It’s also probably where overly aggressive shorts get rekt.
1. The run-up isn’t even close to the same
2. The backdrop couldn’t be more different
3. I doubt they make it this easy.”
Source: Justin Bennett/X
In 2021, Bitcoin attempted but failed to take out resistance at $69,000 twice, triggering a bear market that sent BTC to bear market lows of $16,000.
As for Bennett’s downside target for BTC, he thinks Bitcoin may bounce at $100,000 or $97,000.
“BTC next leg down confirmed.
104,800 flips to key resistance. Support is $100,000.
Same outlook for the last nine days.”
Source: Justin Bennett/X
At time of writing, Bitcoin is trading for $104,439.
Looking at the broader crypto market, the analyst says he’s keeping an eye on the TOTAL chart, which tracks the total market cap of all digital assets. Bennett believes that TOTAL will correct and find support at $3.04 trillion, which aligns with his expected BTC pullback.
“I could be wrong. I’m certainly not always right. However, I’m not sure how some are interpreting this as bullish.
Things can change, but right now, sellers are in control.”
Source: Justin Bennett/X
A bearish TOTAL chart indicates that investors are unloading their crypto holdings.
At time of writing, TOTAL is trading at $3.225 trillion.
Generated Image: Midjourney
