Bitcoin Faces Potential Decline to $54,000, Warns Crypto Analyst

A prominent crypto analyst, Justin Bennett, is cautioning investors about the possibility of Bitcoin (BTC) plummeting to lower levels, specifically in the $63,000 range. With a significant following of 110,800 followers on the social media platform X, Bennett believes that Bitcoin could experience a decline of over 18% from its current value.

According to Bennett, Bitcoin is currently range-bound, but recent events, such as the breakdown of the October 2023 trendline and the imbalances observed on February 26th and 27th, indicate that the cryptocurrency could drop to the $52,000-$54,000 range. Bennett emphasizes that there is a substantial amount of liquidity below the $56,500 low, and markets tend to seek liquidity. While a surge above $72,000 is not out of the question, Bennett believes that a downward trajectory is more likely, considering the BTC chart and the current state of the Dollar Index (DXY). He concludes that the situation will be evaluated on a level-by-level basis.

Bennett’s chart analysis suggests that Bitcoin could experience a decline to the $60,751 level, followed by a bounce to approximately $63,000, and then a collapse below $54,000.

Furthermore, Bennett asserts that Bitcoin’s market top appears to be around the $65,000 level on the monthly chart, as the cryptocurrency has failed to establish support in this area despite numerous attempts since 2021. He warns that anyone bullish on BTC at this point is essentially bullish at resistance, a view he has held for months. Bennett clarifies that his analysis is not rooted in a dislike for Bitcoin or crypto, as he has been a supporter since 2020. However, he believes that the charts do not paint a positive picture, and the stock market is the only factor preventing crypto from experiencing a significant decline.

As of the time of writing, Bitcoin is trading at $63,671, reflecting a decline of over 1% in the past 24 hours.

Please note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets.