- Crypto analyst Justin Bennett predicted a significant pullback in Bitcoin price as crypto market capitalization takes a hit.
- Bennett argues Bitcoin is in the middle of a breakdown from a bearish continuation pattern.
- The analyst sets a downside target of $23,500, a 15% decline from the current price level for Bitcoin.
Bitcoin price continues to bleed as crypto market capitalization declines. Analysts believe Bitcoin and altcoins could witness further pullback in the short term.
Bitcoin price is in the midst of a breakdown
Justin Bennett, a leading crypto market analyst, told over 100,000 Twitter followers that the ecosystem could witness significant pullback, wherein Bitcoin and altcoins lose a massive chunk of their value.
Bennett believes the Bitcoin price is in the midst of a breakdown from a bearish continuation pattern, and $1 trillion is a psychological level for the crypto community. The breakdown occurred today, where over 5% of the crypto market’s capitalization was wiped out, nearly $950 billion was drained out of the ecosystem.
Bennett argues that $1 trillion is the area that offers a crucial support level for the entire crypto market. He was quoted as saying:
[The] $1 trillion [level] was also the most heavily traded level during the early 2021 consolidation.
Crypto market capitalization in USD
Bennett argues that altcoins will take the brunt of the correction.
Bottom line: another 15% lower from the entire crypto market seems likely before we can start talking about the potential for relief. Remember that BTC will be the closest to that -15% mark. Alts, especially lower caps, will probably outpace it by 1.5-2x.
Bennett has predicted a 15% correction in Bitcoin price, where the asset hits a fresh yearly low of $23,500. Altcoins could lose 22.5% to 30% of their value.
Analysts believe Bitcoin price could witness further correction
@BigCheds, a pseudonymous crypto analyst, evaluated the Bitcoin price chart and identified an inverted hammer. The analyst concluded that the pattern is bearish for Bitcoin price and expects a decline in BTC.
BTC-USD chart
FXStreet analysts believe Bitcoin price could decline to the $12,000 level; for more information, watch this video:
