16 May 2022 06:47, UTC.
Reading time: ~2 m
Cryptocurrency strategist Justin Bennett predicts bitcoin will rally beyond expectations
In his opinion, bitcoin has managed to recover a key support level and form a temporary bottom:
“There is a strong possibility that bitcoin has reached a local bottom. Like the sell-off, the rally is likely to exceed expectations.”
Separately, Bennett follows the USDT dominance chart (USDT.D), which tracks the valuation of Stablecoin relative to the market capitalization of all crypto-assets. An increase in USDT.D valuation indicates that traders are selling crypto-assets, while a correction in the chart indicates purchases of BTC and other cryptocurrencies. The analyst believes that USDT.D is ready for a deep correction, as it trades within the trend exhaustion pattern:
“USDT.D has formed an “expanding upward wedge” (exhaustion pattern). A break-down indicates a rally for the crypto market. The target is a 20% drop, which means we can expect BTC to rise 20% from current levels.”
In fact, a 20 percent pullback on the USDT.D chart could push BTC into the $35,000 to $36,000 range.
Bennett recalled that even if bitcoin’s prospects look bearish, the market often provides opportunities for strong bounces:
“We are at that point in the downtrend where many believe that BTC will never demonstrate a rally again. Investors are desperate and this is usually a good time to buy. Even bear markets don’t move in a straight line.”
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