Analyst and trader Justin Bennett is sharing a bearish outlook on Bitcoin (BTC) as the cryptocurrency experiences a correction, leading to a five-month low. Bennett, who has a following of 111,200 on social media platform X, believes that Bitcoin may be forming a rising wedge pattern on the four-hour chart.
A rising wedge pattern is typically seen as a bearish signal, suggesting more downward movement after a bounce. Based on Bennett’s analysis, it is possible that Bitcoin could drop to just above $50,000. He identifies $57,800 as a critical support level for Bitcoin, stating that if this level is not held, the price could potentially fall to $53,000 or $54,000, or even down to $50,000.
At the time of writing, Bitcoin is trading at $57,855. Another analyst, known as Inmortal, shares a similar bearish sentiment, predicting that the cryptocurrency market may not see relief for a couple of months. Inmortal describes the past 120 days as a shake-out period, suggesting that more downside movement may occur before the next bull market phase.
As always, it is important for investors to conduct their own research and due diligence before making any investment decisions in Bitcoin or other digital assets. The opinions expressed by analysts should be taken into consideration, but ultimately, it is up to the individual to assess the risks involved in the market.