A well-known crypto analyst and trader is cautioning that Bitcoin (BTC) may be facing a significant correction ahead.
In a recent update, crypto trader Justin Bennett shares with his 115,900 followers on the social media platform X that Bitcoin’s market structure is deteriorating as it struggles to hold $92,000 as a support level.
“How do some people still not understand? Bitcoin finished February below $92,000. That fact is set. There’s nothing more to be concerned about. Thus far, March has encountered resistance at that level. As long as BTC remains below $92,000 on a monthly closing basis, there’s every reason to exercise caution on a macro scale.”
Bennett notes that even if Bitcoin displays some strength this month, if it fails to close March above $92,000, the leading digital asset risks a further decline.
“Nice reclaim of BTC $81,500 + retest. US CPI (Consumer Price Index) came in lower than expected after some strong January data, likely bringing relief to risk assets. I can see $88,000 and possibly a sweep of $92,000, but from there, focus will revert back to the February breakdown I’ve mentioned.”
The analyst also highlights that based on Bitcoin’s historical correlation with stocks, a market bottom for BTC is unlikely just yet, especially as the S&P 500 is undergoing a correction.
“And if the S&P’s monthly structure since the Great Financial Crisis (which I’ve referenced 117 times) is any guide, we still have a long way to go before discussing a significant bottom.”
As of now, Bitcoin is trading at $80,916, reflecting a 3.2% decline over the last 24 hours.
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Disclaimer: The views expressed at The Daily Hodl do not constitute investment advice. Investors should conduct their own due diligence before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and trades are at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice. Additionally, The Daily Hodl is involved in affiliate marketing.
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