Popular Analyst Justin Bennett Says Latest Cryptocurrency Bump Is a Bull Trap – Here's Why
A closely watched crypto analyst is warning investors to avoid getting too excited after the market experienced a rapid crash over the weekend.
In a series of posts, Justin Bennett told his 107,100 Twitter followers that he expects crypto prices to continue falling, noting that the recent rally could be an attractive bull trap. investors erroneously believe that an extended bull run has begun.
“Don't be fooled. As things settle, this week's rally is nothing more than a bear test/bull trap.
Background is king! “
Bennett provided two charts indicating that Bitcoin (BTC) has fallen below bullish channels – the first track since 2014, the second track since this past April.
Source: Justin Bennett / Twitter
Next, the analyst will discuss how altcoins are unlikely to become safe havens due to the larger negative macroeconomic outlook.
“For anyone saying altcoins won't pull this far… They did it once.
Alts fell more than 90% during the last bear market. So to think they will stop at -74% this time with raging inflation, global recession, etc. is naive, [in my opinion]. "
Bennett provides a chart pair that tracks total crypto market capitalization minus Bitcoin. The first looks at the daily candles since May and the others that show weekly candles dating back to five. 2016.
“Don't forget to zoom out.
Left: What altcoins look like on the daily chart.
Yes: What they look like weekly.
Cryptocurrencies are lower to go, [in my opinion]. ”
The crypto expert concludes his analysis by reminding readers of how S&amp;amp;'s; The P 500 rose last Friday after the head of the Federal Reserve Jerome Powell announced more rate hikes. Bennett argues that risky assets have no near-term prospects.
“A bit of a bounce from crypto today, but let's not forget what S&amp;lt; P 500 did on Friday.
The advantage of risky assets is limited, [in my opinion]. ”
Bitcoin has returned to the negative territory after briefly reclaiming $20,500 on Monday.
At the time of writing, BTC is down nearly 3% and trading for $19,803.
Aug 30, 2022