A widely followed crypto analyst is issuing a warning about Bitcoin (BTC), saying the crypto king could see a sharp decline in price if one other major market crashes.
In a new strategy session, crypto trader Justin Bennett tells his 110,800 followers on the social media platform X that BTC and crypto in general will get hammered if the stock market crashes.
“Crypto bulls better pray the stock market doesn’t roll over because the recent relative weakness suggests the crypto market will get hammered if it does.”
According to Bennett, if Bitcoin’s latest price drop was a fakeout or a deviation, it would have already been known.
“BTC is still holding below its Oct. 2023 trend line, and now we’re seeing some follow-through.
If this were going to be a fakeout/deviation, it likely should’ve occurred on that June 17th candle. Not great, especially when you consider that the S&P, Nasdaq, etc. have been up only for weeks.”
Source: Justin Bennett/X
Bennett goes on to note that the declining market dominance level of stablecoin Tether (USDT) could also significantly impact the digital assets market.
The trader’s charts indicate that Tether’s dominance is forming a higher low, which could spell bad news for the crypto markets.
“I’ve warned about this USDT.D (Tether dominance) trend line for months, and it’s still highly relevant. Higher low developing? This could change, but it’s not a good look for the crypto market as things stand.”
Source: Justin Bennett/X
Source: Justin Bennett/X
Bitcoin is trading for $65,027 at time of writing while Tether’s dominance level is sitting at 4.87.
