A closely followed crypto analyst believes that a significant move to the downside is on the table for Bitcoin (BTC).
Analyst Justin Bennett tells his 111,700 Twitter followers that he believes Bitcoin could witness a deep correction to around $20,000.
According to Bennett, the markets’ tendency to seek liquidity suggests that BTC will likely pull back in order to liquidate the mass build-up of long positions at the key psychological level.
“Whether we see another push to $30,000 or not, it’s only a matter of time before BTC sweeps the $20,000 lows, in my opinion.
It’s just the nature of the beast.”
In the near term, Bennett believes that Bitcoin could rally above $29,500 to liquidate traders who are banking on a BTC correction.
“Given the short liquidations I’m seeing for BTC and ETH, I’d prefer to see a move higher first to flush shorts up to $29,500.
At which time, I’ll start looking for a short entry.
Even the Bitcoin liquidations heatmap points to a cluster of short liquidations near $29,500.”
At time of writing, Bitcoin is worth $28,439.
Looking at Ethereum (ETH), Bennett says that the leading smart contract platform has also amassed long positions at around $1,000, According to Bennett, Ethereum could pull back to liquidate the concentration of longs at the key psychological level.
“Guess what happens when long liquidations pile up below equal lows like the ones at $1,000 ETH?
Probably not nothing.”
At time of writing, Ethereum is trading for $1,870.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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Source: https://dailyhodl.com/2023/04/05/top-crypto-strategist-issues-bitcoin-warning-says-only-a-matter-of-time-before-btc-witnesses-deep-correction/