A popular analyst is issuing a dire warning to crypto investors, saying that Bitcoin (BTC) and Ethereum (ETH) are poised to ignite sharp corrective moves before the next bull cycle can begin.
Top crypto strategist Justin Bennett tells his 100,400 Twitter followers that he’s keeping a close watch on the TOTAL chart, which measures the market capitalization of all digital assets.
According to Bennett, the TOTAL chart is gearing up for one more rally this cycle before breaking its diagonal support and losing more than half of its value.
“[The] anticipated cycle low for TOTAL (total crypto market cap) is $760 million. Lower if we don’t get one last relief rally.
Most think the current pullback leads to the next cycle low.
I think we see one last relief rally before it happens. BTC $52K, ETH $4K before [correction].”
Looking at Bennett’s chart, the TOTAL market cap will bottom out at around $760 million by May 2023, suggesting a downside risk of over 55% from the $1.72 trillion valuation of all crypto assets today.
The crypto strategist also highlights that he sees Bitcoin and Ethereum revisiting their 2017 highs during the corrective period.
“As for cycle lows for BTC and ETH, the above would put them around $18k-$20k and $1k-$1.4k, respectively.”
At time of writing, Bitcoin is exchanging hands for $38,131 while Ethereum is valued at $2,817.
As for the timing of the next bull cycle, Bennett says that he expects the crypto markets to go through a long consolidation phase after bottoming out next year.
“Yes. Probably a bottom sometime in early 2023 followed by 10-15 months carving a base. That would also line up with the next bull market beginning shortly after the next halving in March 2024.”
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