Despite the news that the second sovereign nation to embrace Bitcoin as legal cash (the Central African Republic), Bitcoin (BTC) fell 2% from the previous week. The second and third most valuable assets on the Brave New Coin market cap table, Ethereum (ETH) and Binance coin (BNB), both fell 4% and 3%, respectively.
A well-known crypto analyst and trader claim that Bitcoin (BTC) and the rest of the crypto markets are nearing a local bottom — but there’s a catch.
The Nasdaq (NDX) has lately broken down from an upward channel, according to analyst Justin Bennett, which does not augur well for Bitcoin.
“There goes NDX… which translates to the next leg down for BTC.”
When it comes to Bitcoin, Bennett points out that the lower timeframe has also broken down from a rising wedge, implying that BTC is due for a correction.
Bennett predicts that Ethereum (ETH) will follow in the footsteps of Bitcoin (BTC) and fall in price.
“ETH reversal right on cue. Still looking for $2,500.”
A strong recovery soon?
Although Bennett predicts a retreat in Bitcoin and Ethereum, he believes the next leg down will pave the stage for a big recovery in the crypto markets.
He says he is still waiting for TOTAL to release this. During the next leg lower, many will want $30,000 and even $20,000 BTC. However, the bulk of the time, the majority is incorrect. Yes, eventually, but not when most people expect, he said.
The TOTAL chart displays the market capitalizations of all crypto assets as a whole. Bennett forecasts a significant rally for the crypto markets after marking the channel’s diagonal support on his chart.
Bennett believes BTC will surge to $52,000 during the bounce, while Ethereum will reclaim the $4,000 mark. He also mentions that the rally is expected to start in the next few days.
Bennett forecasts a significant fall in the crypto markets when the relief rally ends, with a final bottom in May 2023.