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 numerous extra lengthy positions to filter.
“I warned concerning the lengthy liquidations beneath $18,000 when BTC was $20,800.
Even mentioned 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 towards a basket of belongings. Usually talking, a weakened DXY often means power for crypto markets.
“The DXY is already down 1.8% at the moment.
Final Friday’s 2% decline was the most important single-day proportion drop since 2015.
Loopy to have two each day candles like this in two consecutive weeks.”
Bennett additionally makes a daring prediction primarily based 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 doubtless.
That might be short-term bullish for threat belongings.
So watch out assuming at the moment’s crypto rally is nothing greater than a bull lure.”
Bennett additionally appears to be like on the complete crypto market cap (TOTAL), a measure of the whole digital asset area. The dealer says TOTAL is testing a stage it should flip to be bullish.
“TOTAL is testing the underside of this triangle.
$850 billion is resistance. It’s additionally the extent bulls must reclaim for crypto to flip bullish.”
TOTAL has shot as much as $900 billion at time of writing, simply above the resistance stage highlighted by Bennett.
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