Bitcoin Flashing Bearish Signal After Failing To Break Above Major Resistance, Says Crypto Trader – Here Are His Targets
Bitcoin (BTC) is currently facing resistance at a key level, leading a popular crypto strategist to predict a potential pullback in the near future. Analyst Justin Bennett shared his insights with his followers on the social media platform X, suggesting that Bitcoin might be forming a bear flag pattern that could result in a decline of more than 7% from its current value.
Bearish flag patterns are often used in technical analysis to forecast sharp downward movements in price. These patterns typically form when the price consolidates upwards after a significant downtrend but fails to break through a key support level. Bennett pointed out that Bitcoin’s failure to hold at $106,600, coupled with the potential bear flag below resistance, could signal a drop to the $97,000-$98,000 range. He also highlighted that a break above $106,600-$106,800 would invalidate this bearish scenario.
While Bennett remains cautious about Bitcoin’s short-term outlook, he also noted the impact of the stock market on the cryptocurrency’s performance. Historically, Bitcoin has shown a correlation with the stock market, and Bennett suggested that if the stock market continues to rally, Bitcoin may not dip below six figures.
In addition to technical analysis, Bennett also referenced the whale versus retail delta indicator (WRD) to gauge market sentiment. The declining WRD value, according to Bennett, indicates that whales (large holders of Bitcoin) are increasing their short exposure compared to retail traders. This shift in sentiment towards bearishness could further influence Bitcoin’s price direction.
As of the time of writing, Bitcoin is trading at $105,069, experiencing a 1.2% decline in the last 24 hours. With various factors influencing its price movements, including technical patterns, stock market trends, and market sentiment, Bitcoin continues to be a closely watched asset in the crypto space.
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Image source: Midjourney
In conclusion, while Bitcoin faces potential resistance and a bearish outlook, market dynamics are constantly evolving, and investors should stay informed and adapt to changing trends in the cryptocurrency market.
