A well-regarded crypto strategist and trader is forecasting a major Bitcoin (BTC) rally that he believes will exceed expectations.
Analyst Justin Bennett told his 100,900 Twitter followers that Bitcoin likely printed a temporary bottom after it managed to reclaim a key support level.
“There’s a good chance crypto has hit a local bottom if BTC can reclaim $28,800 today.
Like the sell-off, the recovery rally is likely to exceed most expectations.”
At the time of writing, Bitcoin is changing hands for $30,150.
The crypto analyst also monitors the USDT dominance chart (USDT.D), an index that tracks the valuation of stablecoin Tether (USDT) relative to the market cap of all crypto assets.
A rising USDT.D rating suggests traders are selling their crypto assets to store their capital in Tether. Meanwhile, a corrective USDT.D chart suggests traders are risking their Tether and buying Bitcoin and other cryptocurrencies.
Bennett says USDT.D is poised for a deep correction as it is trading inside a trend exhaustion pattern.
“USDT.D with a massively widening ascending wedge (exhaustion pattern).
This downside break is the recovery rally for crypto as it moves inversely to bitcoin.
The target is 20% lower, which means roughly 20% higher for BTC from current levels.”
Source: Justin Bennett/Twitter
Bennett adds that a 20% pullback on the USDT.D chart could push Bitcoin “around” between $35,000 and $36,000.
The crypto strategist also reminds his followers that even when Bitcoin looks bearish, the market often presents opportunities for strong bounces.
“We are at a point in the downtrend where many feel BTC will never recover. It’s utter desperation out there. This is usually a good time to shop. Even bear markets don’t move in straight lines.”
Source: Justin Bennett/Twitter
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