“A closely followed crypto strategist and trader is predicting a big Bitcoin rally that he believes will run beyond expectations” — Paul Ebeling
Analyst Justin Bennett tells his 100,900 Twitter followers that Bitcoin has likely printed a temporary bottom after managing to reclaim a key support level.
“There’s a good chance crypto has reached a local bottom if BTC can reclaim $28,800 today.
Like the sell-off, the relief rally will likely run beyond most expectations.”
At time of writing, Bitcoin is changing hands for $29,523.81.
We are keeping a close watch on 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 rallying USDT.D valuation indicates that traders are selling their crypto assets to store their capital in Tether. Meanwhile, a correcting USDT.D chart suggests that traders are risking their Tether and buying Bitcoin and other cryptocurrencies.
Mr. Bennett says that USDT.D is poised for a deep correction as it trades within a trend exhaustion pattern.
“USDT.D with a massive broadening ascending wedge (exhaustion pattern). This breaking lower is the relief rally for crypto as it moves inversely to Bitcoin.
The objective is 20% lower, which roughly translates to 20% higher for BTC from current levels.”
He adds that a 20% pullback on the USDT.D chart could push Bitcoin “roughly” between $35,000 and $36,000.
And also reminds his followers that even if Bitcoin looks bearish, the market often provides opportunities for strong bounces.
“We’re at that point in the downtrend where many feel that BTC will never rally again. It’s complete despair out there. That’s usually a good time to do some shopping. Even bear markets don’t move in straight lines.”
Have a prosperous week, Keep the Faith!