An experienced crypto analyst and trader is cautioning that Bitcoin (BTC) could potentially drop back to the $70,000 range.
In a recent series of tweets, crypto trader Justin Bennett shares with his 115,900 followers on X that Bitcoin might fill a CME gap by reaching the $77,360 mark.
A CME gap refers to the difference between the closing price of Bitcoin on Friday and its opening price on Monday on the Chicago Mercantile Exchange. Traders often pay attention to these gaps as they tend to be filled eventually.
Bennett seems to be pointing towards a gap that occurred in November of the previous year.
“I still anticipate a test of the $78,260 low, particularly following the rejection from the $92,000 monthly resistance. The bulls’ time is running out.”
Bennett also expresses skepticism about Bitcoin breaking through the $92,000 resistance level in the near future, despite recent upward movements.
“There’s the retest of $92,000 resistance. It worked so well the first time that the bulls wanted to try it again. Short from $91,000.”
Lastly, Bennett doubts that the upcoming White House Crypto Summit on Friday, where details about the US Crypto Strategic Reserve are expected, will lead to a sustained rally in Bitcoin.
“Many are hyping up Friday’s crypto summit as if it will bring groundbreaking news. Remember, the man just placed ADA in a ‘strategic’ reserve. It’s hard to take it seriously.
The most likely scenario is Bitcoin dropping before the summit. Otherwise, it could end up being another ‘buy the rumor, sell the news’ event.”
At the time of writing, Bitcoin is trading at $87,884, marking a 3.7% decrease in the last 24 hours.
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