Widely followed crypto analyst Justin Bennett is issuing a warning about Bitcoin (BTC) amid the flagship crypto asset’s massive 2023 rally.
Noting that Bitcoin capitulated twice around each of its last two halving cycles – in 2015 and 2016 and then in 2019 and 2020 – Bennett says that a correction of around 43% from its current level should not be ruled out.
Based on Bennett’s chart, he is suggesting that Bitcoin could reach up to around $50,000 before reversing course.
“It’s been a hell of a run from BTC, and it may very well continue without a significant correction in the short term.
But the last two bear markets ended with a second capitulation.
Will this time be different?
Maybe, but don’t rule out a $25,000 liquidity sweep.”
Bitcoin is trading at $44,146 at time of writing while its next halving cycle is slated for April 2024.
Bennett says he’s still not convinced that the crypto markets are in a bullish phase. According to the crypto analyst, there are several reasons for his lack of conviction.
“Fact is, the macro landscape is VERY different this time than the start of any other crypto bull market.
Not to mention the big-name stocks that have driven this recent push are trading at steep long-term premiums vs. discounts as with other cycle starts.”
In the case of Ethereum (ETH), Bennett says that he sees no reason to abandon his bearish thesis for the second-largest crypto asset by market cap. In his bearish scenario, Bennett projects ETH could fall by around 67% from its current level.
Ethereum is trading at $2,267 at time of writing.
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