A closely watched crypto strategist is issuing a stark warning to Bitcoin (BTC) and Ethereum (ETH) holders.
Crypto analyst Justin Bennett tells his 106,800 Twitter followers that the recent sell-off in the stock market suggests imminent downward movement for Bitcoin.
“Today’s stock selloff is more than just a red day. It confirms massive counterfeiting, likely triggering an extended decline. The pre-COVID 3,400 high is a prime target. I say it since May It would be -16% for the S&P 500 or around -30%-40% for BTC if that happens.
At the time of writing, Bitcoin is trading at $20,049. A 40% devaluation could see BTC trading at the $12,000 price level.
Taking a closer look at Bitcoin, Bennett says BTC is at risk of falling below diagonal support that has supported the top crypto since 2015.
“BTC is testing the 2015 trend line again. Anyone who tells you this looks healthy is either ignorant or a liar. Notice the two long lower wicks of 2015 and 2020. This indicates strong demand. We see the opposite this time .
As for Ethereum, Bennett points out that ETH is forming a head and shoulders top on the four-hour chart with a downside target of $1,000.
“The right shoulder of this potential ETH the head and shoulders begin to form. Confirmation less than $1,500.
At the time of writing, Ethereum is trading hands for $1,498, below the pattern’s neckline and Bennett’s confirmation level.
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Featured image: Shutterstock/gonin