Closely followed crypto analyst Justin Bennett predicts that Bitcoin price will break 2022 lows.
‘Bitcoin price could return to $14,000’
In his current analysis, Bennett shared that he expects a decrease of about 50% in the price of Bitcoin. The prediction in question is based on an ascending channel formation where the Bitcoin price gets stuck every 10 years. This channel served as a strong resistance zone between 2018 and 2020. Bennett points out that if history repeats itself, the Bitcoin price could even break $14,000. The crypto analyst urges investors to be cautious in the coming weeks:
I published this BTC chart in March, which shows the macro resistance between $29,000 and $33,000. $31,800 was the highest level in the last period. Let’s see what happens next…
According to Bennett’s chart, there is a possibility that the ascending channel may break down the support line as Bitcoin price has done before. In such a case, the analyst expects a drop to $14,000, which is the resistance level of 2018.
Traditional markets are another bearish catalyst for BTC
According to Bennett, the double-digit drop in the S&P 500 stock index (SPX) will trigger additional drops in Bitcoin. Earlier this month, the analyst predicted that the S&P 500 stock index would fall if it failed to rise above the 4,610 points reached in July. Meanwhile, 4,610 is the lowest level of SPX compared to 4,820 points recorded in January 2022.
Not everyone agrees: Bitcoin will make a comeback soon
Justin Bennett expects a drop to $14,000 based on historical data, while Dan Morehead, founder of Pantera Capital, offers a more positive outlook. In his statements, the famous manager expressed the view that “there is such a long time that the markets can be in decline”. As Cryptokoin.com reported, an enthusiastic bull awaits after the halving at Pantera Capital.
Bitcoin bulls formed a strong defense at $25,000 support/resistance, delaying a possible drop to $20,000. This bullish view saw Bitcoin’s recovery resistance at $26,000, rising to $26,800. BTC later declined to support levels. The metrics say something interesting about potential bullish moves…
The best way to evaluate the probability of a rally is to consider technical analysis. The four-hour BTC/USD chart has been showing the indecision between the bulls and bears for the past few days. This quiet period caused the Relative Strength Index (RSI) to stay at 36.16. Bitcoin price is likely to continue hovering between $25,000 and $26,000, although the RSI value indicates that BTC is close to the oversold zone.
Finally, as September approaches, the Fed is expected to announce its economic policy decision. Previous FOMC minutes have seen members call for more rate hikes to curb inflation in the US.
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