Don’t Count on Buying Bitcoin at $30,000, Says Crypto Analyst Justin Bennett – Here’s Why

Closely followed crypto analyst Justin Bennett says that bargain-hunters hoping to get Bitcoin at $30,000 will likely end up disappointed.

Bennett tells his 97,000 Twitter followers that many people who watch his YouTube strategy sessions are saying that a $30,000 Bitcoin is imminent, but he doubts traders will get BTC that cheap.

“Every other comment on my YouTube channel is someone waiting/wishing for $30k $BTC.

It would be the first time in a long time that retail gets exactly what they want.

I think a move higher from $35k-$36k is more likely.”

The analyst says that the dollar index (DXY), which compares the USD to a basket of other fiat currencies, is playing a big role in the crypto markets. Usually, a strengthening DXY can signal weakness in many assets, while a struggling DXY often suggests higher prices.

According to Bennett, crypto traders may want to keep an eye on a trend reversal playing out in the DXY to signal a new bull run in the digital asset markets.

“DXY is still coming off. 95.50 is probably next.

A close below 94.60 is required to reverse the trend.”

Source: Justin Bennett/Twitter

The analyst recently said that contrary to what some say, he doesn’t think the crypto bull market is over. While some short-term volatility may be in play, Bennett says crypto is still due for another “melt-up” rally sometime this year.

“I don’t think the crypto bull market has ended.

Markets don’t crash when everyone expects them to, and right now, everyone expects it.

My base case is for one more melt-up this year, followed by a correction in either late 2022 or 2023…

So that means we could be in for more volatility in the short term if the stock market is going to strong-arm the Fed into remaining accommodative for longer.

But ultimately, I don’t think this crypto bull market is over just yet. It’ll be an interesting few months regardless.”

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix



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/Mia Stendal


Tagged : / / / / / / / /

Bitcoin price dips under $60K as Dollar Strength Index reaches 16-month highs

Bitcoin (BTC) logged its worst daily performance since September as BTC price slid by 10% to under $59,000 on Tuesday. On the other hand, the U.S. dollar jumped to its best level in sixteen months after spending across the American retail sector grew despite persistent Covid-19 fears and inflation concerns.

The BTC price established an intraday low of around $58,600 on Coinbase, only to retreat higher to reclaim $60,000 as its psychological support. Its move downside appeared as U.S. President Joe Biden signed the $550 billion infrastructure bill into law, including new tax-reporting requirements for cryptocurrency users.

Stronger retail data

Meanwhile, the dollar continued its prevailing bull run smoothly as sales at the U.S. retail stores rose by 1.7% in October versus 0.4% in the previous month. That provided another evidence — after an excellent Nonfarm Payrolls report last week — that the U.S. economy has been rebounding strongly from the Covid-19 lows.

As a result, investors raised their bids on the dollar, anticipating that the Federal Reserve would accelerate the tapering of its $120 billion a month asset purchase program, leading to earlier-than-expected rate hikes, which remained near zero since March 2020. 

The U.S. dollar index (DXY), which measures the greenback’s performance against a basket of top foreign currencies, touched an intraday high of 95.821 on Nov. 16, its highest level since July 2020. Conversely, Bitcoin, which rallied strongly against a lower interest rate environment throughout 2020 and 2021, retreated.

DXY weekly price chart. Source: TradingView

More gains ahead for the dollar

Analysts anticipated the dollar to continue its growth higher in the coming months ahead, with market analyst Scott Melker predicting DXY to reach 97.50.

At the core of Melker’s bullish outlook was a “double bottom” setup.

In detail, Double Bottoms appear when the price forms two low points on a similar horizontal level to represent a potential bullish reversal. A bullish confirmation comes when the price breaks above a specific resistance level — a high point between the two bottoms — to target level at a length equal to the pattern’s maximum height.

So it appears, the U.S. dollar index has been breaking out of a similar Double Bottom setup, as shown in the chart below.

DXY daily price chart featuring double bottom setup. Source: Scott Melker, TradingView

Bitcoin grapples with a mixed outlook

Bitcoin has more than doubled its prices in 2021 amid growing concerns about inflation. Nigel Green, chief executive of DeVere Group, noted that the cryptocurrency may keep on surging in value at least until the second quarter of 2022, citing the U.S. consumer price index’s (CPI) recent climb to its three-decade high.

“This latest data out of the U.S. will only compound global fears about inflation as price pressures run hot around the world,” he noted, adding:

“In this inflationary period, Bitcoin has outperformed gold, which has been almost universally hailed as the ultimate inflation hedge – until now.”

BTC/USD daily price chart. Source: TradingView

Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore, called Bitcoin’s ongoing correction a “healthy pullback,” especially after its 175%-plus year-to-date price rally to $69,000.

“It would be unusual to keep moving up without corrections,” he noted.

On the other hand, Joel Kruger, a currency strategist at LMAX Group, said that a tighter Fed policy would start weighing on the broader market, hitting the riskiest assets the hardest, a reason why Bitcoin and the rest of the crypto market has been retreating against a rising dollar.

Related: Bitcoin will peak at $253K, Ethereum at $22K this cycle if 2016 halving bull run repeats

Martha Reyes, head of research at Bequant, a digital-asset firm, also called Bitcoin “a risk-on investment,” stating that people would want to raise cash from the most profitable assets in times of stress.

Bitcoin was trading at $60,625 at the time of writing. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.