The final two weeks have been unimaginable for the value of bitcoin. The digital asset has been capable of efficiently make its method out of a miserable bear development and reached two-month highs within the course of. However, with the latest pullback, there could also be a bit extra ache for bitcoin traders earlier than the upward rally continues.
Analyst Justin Bennett Says Bitcoin Below $20,000 Is Possible
In a brand new problem of his crypto trading newsletter, analyst Justin Bennett reveals some bearish tendencies of the market. He first factors to the truth that the market has loved an excellent quantity of features, including as a lot as 28% to its worth in simply the final 18 days. But as is predicted after such a rally, a market correction has pulled again the value of the digital asset.
While there have been speculations that this pullback would solely be momentary, Bennett explains that it might go so much additional. Now, the analyst doesn’t take away from the bull development that bitcoin is at present on however fairly presents a situation the place the value of the cryptocurrency might again to beneath $20,000 earlier than the rally resumes.
BTC might see sub-$20,000 earlier than rally resumes | Source: Cryptocademy
BTC has already fallen again into the $20,000 area as of the time of this writing, giving credence to Bennett’s evaluation. However, with key help for the digital asset now resting at $20,000, bears might pull the value as near this help as attainable earlier than the bears take over as soon as extra.
“I like Bitcoin higher toward $25,000 and potentially $29,000, but not without a pullback into the $20,000 region first,” Bennett stated in his e-newsletter.
Factors That Drive This Pullback
In the identical e-newsletter, Bennett factors to the PPI information launch that underwhelmed the market. In the tip, the much-anticipated launch was decrease than anticipated, triggering fatigue out there. Bitcoin had fallen beneath $21,000 because of this.
Also pointing to the US Dollar Index (DXY), the analyst defined the motion of this index on the again of the PPI information launch would’ve been bullish for belongings comparable to BTC. “But I think markets got ahead of themselves, so a lot of that bullishness was already priced in,” Bennett added.
BTC corrects downward following rally | Source: BTCUSD on TradingView.com
Since this pullback has pushed the value of BTC dangerously near the 5-day transferring common, it ought to come as no shock if the cryptocurrency had been to lose one other couple of hundred {dollars} off its worth within the coming days.
However, the bullish development is predicted to proceed shortly as buying and selling quantity stays excessive, and investor sentiment reaching 9-month highs, sitting very near greed on the Crypto Fear & Greed Index.
BTC is buying and selling at $20,779 on the time of this writing. Its worth is down 2.18% within the final 24 hours, however up 14.54% in a 7-day interval.
