Cryptocurrency analyst Justin Bennett, known for his timely and accurate calls, has issued a warning to investors that Bitcoin (BTC) could revisit its previous all-time high from 2017. Bennett believes that Bitcoin could see a significant drop of around 50% from its current price. He points to a chart showing Bitcoin breaking out of its long-term rising channel, indicating a downward trend. Bennett also notes that Bitcoin could fall below the strong support level of $14,000, which has acted as a resistance zone between 2018 and 2020.
Bennett published his warning in March when Bitcoin was trading between $29,000 and $33,000. The cryptocurrency reached a peak of $31,800 at that time. He asks his followers to guess what’s next.
The drop in Bitcoin’s price could be triggered by a double-digit decline in the S&P 500 stock index, according to the crypto analyst. He suggests that if the S&P 500 loses more than a quarter of its value, this could trigger the drop in Bitcoin. Bennett finds it interesting to see if August will continue its downward trend.
S&P 500 Will Be the Trigger for the Drop
Bennett previously predicted that the S&P 500 stock index would drop if it failed to surpass the level of 4,610 reached in July. The level of 4,610 is below the peak of 4,820 recorded in January 2022, indicating a series of lower highs in the index.
Bennett warns that if the level of 4,610 is confirmed as a lower peak, the S&P 500 could potentially drop by 27%. He also points out that other indexes and stocks of major companies like Apple have already seen significant declines. If this scenario plays out, it could have a devastating impact on the cryptocurrency market.
