This Factor Could Be Sending an ‘Early Warning Sign’ for Bitcoin, According to Trader Justin Bennett
A widely followed crypto analyst says that Bitcoin (BTC) is displaying early warning signs of an upcoming pullback.
In a new thread, crypto trader Justin Bennett tells his 115,800 followers on the social media platform X that BTC whales exiting long positions in favor of building short positions against retail could cause the crypto asset by market cap to slide down to $106,300.
“BTC isn’t the most exciting market at the moment, but that $106,000 imbalance looks appealing if this holds. Technically still range-bound for now. It’s very early and therefore speculative, but whales were exiting long positions and building shorts against retail on Wednesday. This could change, but it could also be an early warning sign of a pullback into $106,300.”
Source: Justine Bennett/X
The trader’s chart indicates that if BTC were to slide, it would happen sometime during the next 48 hours.
Bennett goes on to note that crypto traders should keep an eye on the health of stocks, particularly the S&P 500, as a dip below a specific level could cause it to crash back down to its lows in April and May.
“The SPX is holding support now, but if this fails, especially at 5,960, those April and May gaps will be fair game. Not interested in it yet. Just watching.”
Source: Justine Bennett/X
The flagship digital asset is trading for $107,698 at time of writing, a 2% decrease during the last 24 hours.
Generated Image: Midjourney
