A popular crypto strategist is issuing a warning to investors and traders of Ethereum (ETH) competitor Solana (SOL).
Crypto analyst Justin Bennett tells his 101,900 Twitter followers that Solana has broken down from its diagonal support after an upside fakeout and now appears headed to lower levels.
“Markets got choppy over the weekend as expected, but so far so good with this SOL fakeout from last week.
Beautiful lower high to short on that retest. And now trading below this channel.
$33.80 and $31 are next, in my opinion.”
At time of writing, Solana is changing hands for $34.14, down 3.44% in the last 24 hours.
As for Bitcoin (BTC), the crypto strategist believes BTC’s near-term price action is still largely influenced by the S&P 500. Bennett also says that the S&P 500 looks bearish after failing to move above a key level.
“The S&P 500 failed to close above 3,900 last week. Get below this short-term trend line [3,750], and 3,640 is likely next, followed by the 3,400 pre-Covid high. 3,400 is only a matter of time, in my opinion.”
According to Bennett, a move to 3,400 for the S&P 500 puts BTC at risk of another significant correction.
“3,400 is about 12% below current levels.
The last time the S&P 500 dropped 12%, BTC lost 33%.
That doesn’t mean it will repeat exactly, but a 20%-30% drop from Bitcoin is reasonable if the S&P 500 tests 3,400.”
At time of writing, Bitcoin is swapping hands for $19,903. A 30% haircut would price BTC around $14,000.
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