Cryptocurrency analyst Justin Bennett says that market crashes don’t happen when everyone expects them to.
Bennett tells his 97,800 Twitter followers that the crypto bull market is still intact, but a correction could be months away.
“I don’t think the crypto bull market has ended.
Markets don’t crash when everyone expects them to, and right now, everyone expects it.
My base case is for one more melt-up this year, followed by a correction in either late 2022 or 2023.”
Bennett believes that the Federal Reserve will not hike interest rates and reduce asset purchases aggressively but will instead “choose market stability over controlling inflation” especially if the “stock market corrects further.”
The crypto analyst says that volatility could consequently increase if the Federal Reserve is forced to remain “accommodative.”
“So that means we could be in for more volatility in the short term if the stock market is going to strong-arm the Fed into remaining accommodative for longer.
But ultimately, I don’t think this crypto bull market is over just yet. It’ll be an interesting few months regardless.”
Bennett also relays in a newsletter that Bitcoin could surge to the resistance level between $40,000 and $42,000 if it manages to stay above the $35,000 price.
But if the flagship cryptocurrency falls below $35,000, it could collapse by nearly 20%, according to the crypto analyst.
“For now, it’s a matter of Bitcoin staying above the $35,000 area. Do that, and $40,000-$42,000 is the resistance area to break, followed by $45,000-$46,000.
On the other hand, a daily close below the $35,000 region would open the door to $30,000.”
Bitcoin is trading at $36,655 at time of writing.
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Featured Image: Shutterstock/prodigital art/Natalia Siiatovskaia
Source: https://dailyhodl.com/2022/01/28/crypto-bull-market-not-over-according-to-analyst-justin-bennett-but-theres-a-catch/