Top Trader Shares With ‘Major Implications’ For Crypto, Break Down Bitcoin Volume
A widely followed crypto analyst looks at traditional stocks with “huge implications” for crypto traders.
Analyst Justin Bennett says to his 111,400 Twitter followers that the outcome of the current triangle pattern on the Dow Jones Industrial (DJI) could affect crypto in 2023.
“This is the DJI triangle that could have big implications for stocks and crypto this year.
Still reeling. Blue levels are the measured targets depending on the direction it breaks.”
Next, Bennett breaks down Bitcoin (BTC) volume levels. The merchant says recent BTC price movements were heralded by volume weakness.
“Sometimes all you need is volume.
The recent bearish divergence between higher highs from BTC and lower highs from volume signaled weakness.
It was a massive foreshadowing of this week’s fall.”
Bennett too says BTC’s volume levels preceded similar volatility in April 2021.
“And this is not the first time Bitcoin has warned us via a drop in volume.
Even the peak in April 2021 was heralded by a decline in volume for three consecutive months.
I tweeted about this at the end of April.”
Although a drop in volume doesn’t always indicate a drop in price, Bennett said says it is a metric for traders to keep an eye on.
“You won’t always get a drop in volume to signal an upcoming correction. But when you see a market making higher highs and volume making lower highs for two weeks or longer, it’s time to pay attention.”
BTC is worth $21,652 at the time of writing, down 4% on the day.
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