Crypto Analyst Warns Of Possible Bitcoin Downturn: 'The Next Stop Is $38K On A Sustained Break'

Cryptocurrency analyst Justin Bennett has warned about a possible downturn in Bitcoin's (CRYPTO: BTC) value.

Following a significant uptrend, Bennett suggests that Bitcoin might be heading towards a bearish trend, potentially dropping to the $38,000 mark.

What Happened: In a post on X on Friday, Bennett expressed concern over Bitcoin's future and said, "Not a great look for BTC while below $43,300. Possible lower high forming and starting to weigh on trend line support."

Not a great look for $BTC while below $43,300.

Possible lower high forming and starting to weigh on trend line support.

The next stop is $38k on a sustained break#Bitcoin pic.twitter.com/dhMTmE619r

— Justin Bennett (@JustinBennettFX) December 15, 2023

Bennett is also closely observing the USDT dominance chart (USD.T), a key indicator of the crypto market's capitalization held by USDT.

Also Read: Bitcoin Primed To Explode By Over 400%, Says Crypto Analyst

An increase in USDT.D, according to Bennett, would signal a bearish trend for the market and suggest a shift from cryptocurrencies to stablecoin.

Tether dominance $USDT.D — which moves inversely to #Bitcoin — telegraphed the recent pullback perfectly.

Tested and swept the Aug. 2022 low before bouncing.

I'm still eyeing channel support just below that mark, which could mean one more higher high for $BTC before a more… https://t.co/ou3K66QWQF pic.twitter.com/ps7Oo9pifR

— Justin Bennett (@JustinBennettFX) December 12, 2023

Additionally, Bennett noted a resistance in the total market cap of digital assets (TOTAL), which indicated a potential downward pressure on Bitcoin.

He cautioned that, if Bitcoin fails to hold the $38,000 support level, it could see a further decline to around $32,000.

Looks like the #crypto market found selling pressure right where we thought it might.$TOTAL $1.6-$1.7T was/is the resistance area to watch.

Early signs of a local top here.$BTC $ETH https://t.co/ay49V2aEUw pic.twitter.com/o1n8mdQlh1

— Justin Bennett (@JustinBennettFX) December 11, 2023

At the time of writing, Bitcoin was trading at $42,356.13, down by 4 percent in the last seven days. 

Now Read: Here's Why One Analyst Says The Worst For Bitcoin May Not Be Over

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