Popular crypto analyst and trader Justin Bennett has warned that an important metric suggests Bitcoin (BTC) could suddenly drop significantly. The analyst also highlighted his expectation that the S&P 500 index may be close to reaching a peak.
Trend in USDT.D Chart Signals Potential Bitcoin Crash
Crypto analyst Justin Bennett told his followers on social media platform X that based on the Tether dominance (USDT.D) chart, Bitcoin may not have hit the bottom yet. In his warning, he stated, “In my opinion, Bitcoin hasn’t bottomed. We might see a retest around the mid $44,500, but charts like USDT.D are signaling a new decline. The USDT.D chart tends to move inversely to Bitcoin’s price.”
Investors often monitor the USDT.D chart because it shows how much of the crypto market is made up of the largest stablecoin, USDT. A rising USDT.D chart traditionally indicates that investors are moving out of cryptocurrencies in favor of stablecoins, which is interpreted as bearish for Bitcoin and altcoins.
Previously, the analyst had predicted based on the trend in the USDT.D chart that Bitcoin could drop over 30% and retest the $30,000 level, saying, “The USDT.D chart shows this. It moves inversely to BTC, and the levels on this chart have been in place since October 2023. In my view, the trend in the chart will bring BTC to around $30,000.”
S&P 500 Also Receives Peak Warning
On the other hand, Bennett is also closely monitoring the S&P 500 (SPX) index. According to the analyst, SPX is showing a close resemblance to the market structure when BTC reached its peak in April 2021, which could mean it is only a few points away from a cycle peak:
The appearance of SPX is nearly identical to the 2021-2022 BTC peak. In my opinion, a major breakout moment is approaching, and we are only 1% away from the 5,000 psychological level. I believe we have reached the peak.