Analyst warns of massive Bitcoin fall to four-digit level when crypto reaches “Uncharted Territory”
A popular crypto trader warns that Bitcoin (BTC) may fall as the crypto market faces severe macroeconomic headwinds.
Cryptoanalyst Justin Bennett tells his 10,600 YouTube subscribers that a bearish flag pattern formed on Bitcoin’s chart suggests that the leading digital asset could plummet to a price target of around $ 8,500.
“It simply came to our notice then. You can see where we have a much smaller bear flag pattern that is evolving …
The target in this case is just around $ 8500. Just over $ 8,000. “
Bennett says that drawing a trend line from the top of 2017 to today also suggests that Bitcoin may fall below $ 10,000.
“If we draw a trend line from the previous cycle peak, from this high back here, you can see that we get a range between $ 8000 and $ 9000.
Now I realize that this trend line is not that important. What I find interesting, however, is the fact that BTC has put every single cycle in a trend line that is similar to it. “
The crypto trader says that unlike previous cycles, the crypto market is in an unknown territory since it has never encountered the prevailing macroeconomic conditions before.
“We have to remember that this bear market is unlike any other. Because in previous bear markets for Bitcoin and the rest of the crypto market, stocks were on an uptrend. Yes, they had withdrawals along the way, but for the most part they were on an uptrend.
We did not face high inflation, and the Fed was generally accommodating throughout the period.
However, what we are dealing with right now is very different from everything crypto has been over the last decade. Because right now we have inflation reaching 40-year highs, we have Fed tighteners. In fact, it’s the most aggressive tightening we’ve ever seen from the Fed
And furthermore, the world is facing a recession. And crypto has never been through a global recession. It did not even exist during the great financial crisis of 2008-2009.
Everything you think you know or something from previous cycles really needs to be thrown out the window or reconsidered significantly. Because again, this is unlike anything we’ve ever seen …
This is unlike anything we’ve ever seen before. It is unknown territory. “
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