A widely followed crypto analyst is issuing a warning about Bitcoin (btc), saying that the king of cryptocurrencies could see a sharp drop in price if another major market crashes.
In a new strategy session, cryptocurrency trader Justin Bennett says his 110,800 followers on social media platform X that BTC and cryptocurrencies in general will be affected if the stock market crashes.
"Crypto bulls better pray that the stock market doesn't crash because the recent relative weakness suggests the cryptocurrency market will take a hit if it does."
According to Bennett, if the latest Bitcoin price drop was a pretend or a deviation, it would have already been known.
“BTC is still holding below its October 2023 trend line, and we are now seeing some follow-through.
If this was going to be a fake/deviation, it probably should have happened on that June 17th candle. Not great, especially considering that the S&P, Nasdaq, etc. They have only been going up for weeks.”
Bennett continues note that the decreasing level of market dominance of the Tether stablecoin (USDT) could also significantly affect the digital asset market.
Trader charts indicate that Tether dominance is forming a higher low, which could spell bad news for the crypto markets.
“I have been warning about this USDT.D (Tether Dominance) trend line for months, and it is still very relevant. Major under development? This could change, but as things stand it is not a good outlook for the cryptocurrency market.”
Bitcoin is trading at $65,027 at the time of writing, while Tether's dominance level is session to 4.87.
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Disclaimer: The opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and trading are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is it an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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