A closely watched crypto strategist is issuing a dire warning to holders of Bitcoin (BTC) and Ethereum (ETH).
Crypto analyst Justin Bennett tells his 106,800 Twitter followers that the recent selloff in the stock market suggests an imminent move to the downside for Bitcoin.
“Today’s share sale is more than just a single red day. It confirms a massive forgery, which is likely to trigger an extended move lower. The 3,400 pre-COVID high is a prime target. I’ve been saying this since May. That would be -16% for the S&P 500 or roughly -30%-40% for BTC if that happens.”
At the time of writing, Bitcoin is trading at $20,049. A 40% devaluation could see BTC trading at the $12,000 price level.
Looking closer at Bitcoin, Bennett says BTC is in danger of breaking below a diagonal support that has driven the top crypto since 2015.
“BTC is once again testing the 2015 trendline. Anyone who tells you this looks healthy is either ignorant or lying. Note the two long lower weeks from 2015 and 2020. That indicates strong demand. We see the complete opposite of it this time.”
As for Ethereum, Bennett highlights that ETH is forming a head and shoulders top on the four-hour chart with a downside target of $1,000.
“Right shoulder of this potential ETH head and shoulders begin to form. Confirmation under $1500.”
At the time of writing, Ethereum is exchanging hands at $1,498, below the pattern’s callout and Bennett’s confirmation level.
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