“Investors beware: Trader issues Bitcoin alert, claiming it’s ‘difficult to believe’ but warns that a single catalyst could trigger a drastic plunge, potentially sending BTC crashing to $15,000.”
Crypto analyst Justin Bennett is cautioning investors about the potential for a significant correction in Bitcoin. Bennett believes that based on the historical correlation between BTC and stocks, Bitcoin could correct by 54% from its current level. He points to the steep stock market correction in February and March 2020, where the S&P 500 index plunged by 25% and Bitcoin fell by around 50%. Bennett predicts that if the S&P 500 index falls to around 3,255 points, a support level that was a resistance level in 2020, Bitcoin could follow suit.
Currently, Bitcoin is trading at $34,050, while the S&P 500 index is at around 4,170 points. Despite Bitcoin’s recent strength against equities, Bennett reminds investors that correlations between assets ebb and flow, and if the stock market experiences a downturn, it’s likely that crypto will follow.
It’s important for investors to stay informed and monitor the market closely, as the crypto market can be volatile. As always, it’s advisable to do thorough research and exercise caution before making any investment decisions.
Disclaimer: The opinions expressed in this blog post are not investment advice. Investors should conduct their own research and consider their own risk tolerance before making any investment decisions.