Justin Benett, a popular crypto analyst and trader, has stated that Bitcoin (BTC), the largest cryptocurrency by market cap, is yet to bottom as the index tracking the performance of S&P 500 worsens.
In a new strategy session, Bennett told his teeming subscribers on YouTube that Bitcoin may continue its bearish trend if the S&P 500 fails the resurge.
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Justin Bennett noted:
“If we see a bear market, a true bear market for the S&P 500 and we enter a recession which I personally think that we’re already in a recession, then we could very well see the S&P 500 drop 30%, 40%, if not 50%.
“And look, if BTC is hovering around $20,000 while the S&P 500 is off its all-time high by just 19%, then what happens if the S&P 500 is off by 30% or 40% or 50%? We’re going to see Bitcoin a lot lower than $20,000. I can pretty much guarantee you that now.”
It should be noted that Bitcoin (BTC) has dropped below the $20,000 support level. At the time of press, BTC is trading at $19,058, with a relatively 5% price downtrend in the last 24 hours.
Bennett further stated that the S&P 500 index, which has clearly demonstrated correlation with Bitcoin since bears took over the market, is yet to enter the bear market territory.
Read Also: MicroStrategy Announces Purchase of Bitcoin (BTC) worth $10 Million amid Market Downturn
Although Bitcoin showcased some positive trends recently, the analyst believes that the flagship crypto is yet to bottom.
“Bitcoin and the S&P 500 have been tracking each other ever since this sell-off started. And right now BTC is off its all-time high by quite a bit but the S&P 500 is only off its all-time high by 19%. Twenty percent is the start of a bear market, so 19% is nothing.
“First and foremost, we obviously have this ascending channel that formed here off of the recent low, down here around $17,600.
“Now I know a lot of people think that this is the macro bottom for BTC. I tend to disagree with that and I think a lot of people think this is the bottom because for a long time everybody was thinking that if we did see a bear market we’d see Bitcoin around $20,000 and then we would see a bounce.”
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