Bitcoin Price At Risk Of Dropping To $10k If This Happens

The post Bitcoin Price At Risk Of Dropping To $10k If This Happens appeared first on Coinpedia Fintech News

A lot has happened this week in crypto. Grayscale Bitcoin Trust experiencing its lowest outflows since its inception at $429 million on January 24, setting the tone for an intriguing period. Meanwhile, Chair Gary Gensler and the U.S. Securities and Exchange Commission have been making waves with a flurry of crypto enforcement actions, adding an extra layer of drama to the scene.

Last but the least, nine spot Bitcoin ETFs also managed to pull in a whopping 100,000 BTC in just seven days, injecting a dose of excitement into the market. Now Justin Bennett has issued a stark warning for Bitcoin and ETH, making crypto puzzled. 

A popular cryptocurrency analyst, Justin Bennett, has updated his outlook on Bitcoin (BTC) following its stagnant $40K move in the last five days. According to Bennett, Bitcoin could potentially drop more than 75% of its current value if a black swan event triggers a correction.

He analyzed whether the recent “mind-bending pump” of ETF, which triggered the price to $49K, is over or if BTC has more room to run. In a direct and to-the-point manner, Bennett draws parallels with the 2020 market downturn during the onset of the pandemic, suggesting a plausible price range for Bitcoin between $10,000 and $15,000. 

Analyzing Bitcoin’s Next Moves

Based on Bitcoin’s price movements. The trader suggests that the monthly chart shows Bitcoin is currently encountering resistance at the 0.768 Fibonacci retracement level. In technical analysis, the trader points out that Bitcoin’s price struggles to surpass this particular retracement level.

From his micro perspective, Bennett correlates the Euro’s performance against the U.S. dollar with a broader downturn in the crypto market. He dismisses the popular notion that Bitcoin’s upcoming halving in April will automatically lead to a price rally, highlighting the significant role of unfavorable macroeconomic conditions in determining market cycles.

Ethereum Could Go Down to $1,450, Bennett Suggests

Looking at Ethereum (ETH), Bennett, a crypto analyst, worries about Ethereum’s future, especially as it couldn’t maintain support at $2,400. In an unpopular opinion, he suggests the entire crypto market might be at its peak. His chart analysis predicts Ethereum might drop to $1,450 by May. According to Bennett, despite hopes for a positive impact from a potential Ethereum ETF approval, recent SEC delays and a current trading price of $2,213 have contributed to a cautious outlook for both Bitcoin and Ethereum.