Crypto analyst Justin Bennett discusses where the overall crypto markets’ continued price drop will end.
In his new tweet, Bennett says that according to his technical analysis, the total market cap of crypto assets could drop to $950 billion, a roughly 30% drop from current levels.
“The measured target of this last triangle means a total crypto market cap of $950 billion, or -30% lower than today’s price. But that’s what technical analysis says. It certainly doesn’t mean it will happen.”
Crypto market cap – Source: Justin Bennett/Twitter
The closely-followed analyst says a declining stock market could be a bearish trigger to put pressure on crypto assets. According to him, a drop below 4,000 for the S&P 500 index could be on the horizon, dragging Bitcoin and other digital assets down with it.
“S&P 500 decline confirmed. I expect at least 5-10% correction from here.
Remember that even the ascending expanding wedge is a pattern of exhaustion…
This is important for cryptocurrency. 99.9% of CT (crypto Twitter) focused on Bitcoin. Meanwhile, we saw the red after the red flag from S&P.
When the feeling of risk aversion kicks in and stocks are still the #1 risk asset, everything is interlinked.”
S&P 500 Chart – Source: Justin Bennett/Twitter
Bennett’s view of downside risk for crypto seems in line with that of fellow crypto analyst Smart Contracter, who recently announced his buying space for Bitcoin.
“$25,000 – $28,000 for BTC is the ideal point I miss, I don’t miss before that.” said.
At the time of writing this news, Bitcoin is hovering around $34,000, up 4% in the last 24 hours.