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Analyst Justin Bennett is highlighting how Bitcoin and the crypto markets can recover from a sudden correction that shaved off nearly $400 billion worth of its market cap.
According to data from CoinGlass, over $882,000,000 in liquidations were triggered in a 24-hour span when Bitcoin corrected roughly 10%, bringing the rest of the market down with it.
Bennett tells his 89,000 Twitter followers that if Bitcoin loses the $60,000 level, a further plunge to $53,000 is on the table.
“Looks like yesterday’s BTC bearish engulfing candle was a sign.
Not sure if we’re out of this just yet, but there’s a lot of support around $60,000.
I’ll look to $55,000 unless Bitcoin can reclaim $63,300.”
Additionally, the analyst notes that crypto prices drop 20% to 30% regularly, and Bitcoin is only 12% off its high.
To gauge the state of the crypto markets, Bennett has his eye on the US dollar index (DXY) which compares the USD to a basket of other major fiat currencies. Generally, a weaker US dollar can often suggest higher prices in many assets, while a strong greenback can hint at falling prices.
According to Bennett, DXY is traveling up a large ascending channel. At the very top of the channel, Bennett suggests that DXY is at a resistance level and could revert back down.
“DXY just tested 95.80 resistance.
Now close the day back below 95.50.”
The crypto analyst has previously cited a plunging USD for a potential under-the-radar catalyst that could send Bitcoin and the rest of the markets soaring.
Ultimately, Bennett predicts that Bitcoin ends the bull cycle well above the $200,000 level, but during a longer time frame than many expect.
“I still think we see the same cycle peak for $BTC that I’ve mentioned in the past, somewhere between $207k and $270k.
But I am starting to think it could take longer to get there than most expect.
More capital AND time to push prices higher. Makes sense.”
