Bitcoin is stuck at current levels. This number one cryptocurrency is not able to propel upwards, and may be in danger again of hitting its yearly lowest.
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Bitcoin is currently trading at $20,700, with some sideways movements over the last week.
Justin Bennett, a crypto analyst says that Bitcoin may be hinting at more losses. The traditional stock market rallied, but the cryptocurrency was still rangebound.
Bitcoin’s price has been in high agreement with other traditional stocks. In particular, the price of Bitcoin seems to be moving in tandem with the Nasdaq 100 and the S&P 500 Index.
But, the dynamic has changed in short periods making BTC a weaker as equity trends upwards. Bennett believes that this signal is a sign of a fakeout. It’s a false upwards movement prior to a re-test for previous support.
At the moment, the analyst claims, there is nothing more important for BTC’s price than equities. Via Twitter, Bennett wroteBelow is the shared version of the chart.
Everything for #crypto boils down to this…Does the S&P 500 fail to hold above 3,880? If the answer is yes, then this rally will be a fakeout. Stocks and crypto alike are likely to see a lower next leg. All else is noise. You could literally trade BTC using nothing but the S&P chart above. It appears that this level is going to fail.
As seen in the chart above, the S&P 500 broke below a major trendline and seems to be heading towards critical support at 3,800. Bitcoin seems to be holding its levels despite the S&P 500 price action, but Bennett ruled out the possibility of a “fakeout” due to the overall weakness in the market.
I have seen comments suggesting that it could be a cheat.
Already, the fakeout to upside has occurred. It was confirmed by the last close at 1h.
There are no guarantees but it is rare for fakeouts to occur. pic.twitter.com/GQjKCwzRm9
— Justin Bennett (@JustinBennettFX) June 28, 2022
Bitcoin Levels to Watch in the Event Of Additional Losses
Material Indicators data shows that liquidity on the crypto-exchange Binance is constantly changing at current levels. There are over $30 million in bids orders below BTC’s price which could provide important support.
However, as seen below, asks orders to have been swelling which could prevent BTC’s price to break above $21,000 and get out of the danger zone. Material Indicators analysts identified $17,000 to $19,000 as potential areas for Bitcoin.
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There are large liquidity pools at these levels and Bitcoin’s price tends towards them. According to the analyst,
It looks like it is a #BTC bid ladder that will eventually be filled. It will be interesting to see if the ladder fills up or adjusts closer to active trading.
