A widely followed crypto analyst is warning that Bitcoin (BTC) could plummet by double digits after failing to break out.
In a new strategy session, crypto trader Justin Bennett tells his 110,800 followers on the social media platform X that Bitcoin is at risk of falling more than 11% of its current value.
“BTC $53,000 has been my target since the $63,000 failure (see posts from mid-August), but don’t rule out $48,000. Markets love symmetry, and fake outs to one side of a pattern usually trigger extended moves in the opposite direction.”
Looking at his chart, the analyst suggests that Bitcoin has hit the diagonal resistance of an ascending channel and is now in a downtrend that may test the lower bound of the channel at $48,000 before bouncing in October.
The analyst also warns that Bitcoin is appearing weak on the monthly chart after August put in a seven-month low.
“Is this still just a bullish retest for Bitcoin? I don’t think it is, and I’ve made that clear since April. BTC bulls need to get their ass in gear and soon for Bitcoin to avoid a significant correction. By the way, August was the lowest monthly close since January.”
Bitcoin is trading for $54,359 at time of writing, down more than 3% in the last 24 hours.