A broadly adopted crypto analyst is wanting on the wider crypto markets following this week’s FTX meltdown.
Crypto analyst Justin Bennett tells his 111,400 Twitter followers that king crypto Bitcoin (BTC) is testing a low that it hasn’t skilled since June 2022.
“BTC is retesting the June low.
Resistance for now. A reclaim can be bullish and fairly unbelievable given the week we’ve had, however nothing would shock me at this level.”
With BTC buying and selling for $17,744 at time of writing, Bennett says he doesn’t suppose there are a lot of extra lengthy positions to filter.
“I warned in regards to the lengthy liquidations beneath $18,000 when BTC was $20,800.
Even stated I assumed we had been near the highest, which we had been.
These longs have been cleared out, and there isn’t a lot liquidity beneath this week’s low.
Extract from that what you’ll.”
Bennett subsequent moves on to the US Greenback Index (DXY), an indicator of the US greenback’s power in opposition to a basket of property. Usually talking, a weakened DXY normally means power for crypto markets.
“The DXY is already down 1.8% in the present day.
Final Friday’s 2% decline was the most important single-day proportion drop since 2015.
Loopy to have two every day candles like this in two consecutive weeks.”
Bennett additionally makes a daring prediction based mostly on the DXY’s exercise.
“If the DXY ends the week beneath 109.30, a run on the 102-103 multi-year highs appears more and more possible.
That may be short-term bullish for threat property.
So watch out assuming in the present day’s crypto rally is nothing greater than a bull entice.”
Bennett additionally seems on the complete crypto market cap (TOTAL), a measure of the complete digital asset area. The dealer says TOTAL is testing a degree it should flip to be bullish.
“TOTAL is testing the underside of this triangle.
$850 billion is resistance. It’s additionally the extent bulls have to reclaim for crypto to flip bullish.”
TOTAL has shot as much as $900 billion at time of writing, simply above the resistance degree highlighted by Bennett.
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