The altcoin market is about to explode after a long period of consolidation, says crypto analyst Justin Bennett
Crypto analyst Justin Bennett predicts a breakout in altcoin prices after a long and quiet period of consolidation.
Bennett says his 109,900 Twitter followers that the total market cap for altcoins has rolled up in a long wedge pattern, suggesting a massive move is imminent.
“This quiet period for crypto is coming to an end. The longer a market tumbles, the more explosive the breakout will be. Get ready.”
Bennett backs up its bullish position by suggesting that the US Dollar Index (DXY) is on the verge of breaking out. The DXY pegs the US dollar against a basket of other fiat currencies, and a falling DXY traditionally suggests upside for risk assets like crypto.
According to Bennett, DXY may be about to be rejected at the top of a large ascending channel.
“DXY Linear Chart. Not the best time to be bearish on stocks and crypto, in my opinion.”
Bennett says Ethereum (ETH), the world’s second largest cryptocurrency, is also breaking the resistance around the $1300 level in a descending channel.
“The ETH support is still there. Now testing channel resistance.”
Looking at the S&P 500 (SPX), which has been correlated with crypto markets in recent years, Bennett says that if the $3,575 level holds, a rally could ignite and potentially boost crypto as well.
The analyst looks to the upcoming Consumer Price Index (CPI) for a potential catalyst for the market’s next move.
“Not hard to imagine a relief rally from here, but there is a lot riding on Thursday’s CPI.
3575 is the level to hold.”
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