A widely followed crypto analyst is looking at the wider crypto markets following this week’s FTX meltdown.
Crypto analyst Justin Bennett tells his 111,400 Twitter followers that king crypto Bitcoin ( BTC ) is testing a low that it hasn’t experienced since June 2022.
“BTC is retesting the June low.
Resistance for now.A reclaim would be bullish and pretty incredible given the week we’ve had, but nothing would surprise me at this point.”
Source: Justin Bennett/YouTube With BTC trading for $17,744 at time of writing, Bennett says he doesn’t think there are many more long positions to clear out.
“I warned about the long liquidations below $18,000 when BTC was $20,800.
Even said I thought we were close to the top, which we were.
Those longs have been cleared out, and there isn’t much liquidity below this week’s low.
Extract from that what you will.”
Source: Justin Bennett/YouTube Bennett next moves on to the US Dollar Index (DXY), an indicator of the US dollar’s strength against a basket of assets.Generally speaking, a weakened DXY usually means strength for crypto markets.
“The DXY is already down 1.8% today.
Last Friday’s 2% decline was the largest single-day percentage drop since 2015.
Crazy to have two daily candles like this in two consecutive weeks.”
Source: Justin Bennett/YouTube Bennett also makes a bold prediction based on the DXY’s activity.
“If the DXY ends the week below 109.30, a run at the 102-103 multi-year highs seems increasingly likely.
That would be short-term bullish for risk assets.
So be careful assuming today’s crypto rally is nothing more than a bull trap.”
Source: Justin Bennett/YouTube Bennett also looks at the total crypto market cap (TOTAL), a measure of the entire digital asset space.The trader says TOTAL is testing a level it must flip to be bullish.
“TOTAL is testing the underside of this triangle.
$850 billion is resistance.It’s also the level bulls need to reclaim for crypto to flip bullish.”
Source: Justin Bennett/YouTube TOTAL has shot up to $900 billion at time of writing, just above the resistance level highlighted by Bennett.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter , Facebook and Telegram
Surf The Daily Hodl Mix
Check Latest News Headlines
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice.Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets.Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility.
The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor.Please note that The Daily Hodl participates in affiliate marketing.Featured Image: Shutterstock/Quardia/AtlasbyAtlas Studio/Sensvector
The post Popular Crypto Analyst Breaks Down Bitcoin (BTC) and US Dollar Strength in the Wake of FTX Fiasco appeared first on The Daily Hodl ..
