Bitcoin Analyst Warns of Potential 50% Plunge

Crypto analyst Justin Bennett is warning that Bitcoin (BTC) could revisit a level in the lower teens last reached in 2020. Bennett tells his 111,500 followers on the social media platform X that Bitcoin could plunge by nearly 50% from its current price.

Using a chart showing that the flagship crypto asset has fallen out of the ascending channel that it has stuck to for about a decade, Bennett says that Bitcoin could plunge to slightly below the support level of $14,000, acting as a strong resistance zone between 2018 and 2020.

“I posted this BTC chart showing macro resistance at $29,000 – $33,000 back in March. $31,800 was the recent swing high. Guess what comes next…”

According to Bennett, a Bitcoin plunge could be set off by the S&P 500 stock index (SPX) falling by double-digit figures.

“What could trigger it? The SPX doing this… [correcting by over a quarter of its value] Will be interesting to see if August finishes as a bearish engulfing month.”

Earlier this month, Bennett predicted that the S&P 500 stock index would plummet if it failed to go above the 4,610 points reached in July. The 4,610 level is the SPX’s lower high relative to the 4,820 points recorded in January of 2022.

“A 27% dump from SPX is more than possible if this confirms as a lower high. We’ve already seen significant breakdowns from other indices and big names like Apple (NASDAQ: AAPL), so don’t rule it out. Imagine the carnage in the crypto market if this materializes.”

The SPX is currently at 4,397 points with the lower high of 4,610 points still intact.