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.
— Justin Bennett (@JustinBennettFX) December 15, 2023
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
Bennett is also closely observing the USDT dominance chart (USD.T), a key indicator of the crypto market's capitalization held by USDT.
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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.
— Justin Bennett (@JustinBennettFX) December 12, 2023
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... pic.twitter.com/ps7Oo9pifR
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-$1.7T was/is the resistance area to watch.
— Justin Bennett (@JustinBennettFX) December 11, 2023
Early signs of a local top here.$BTC $ETH pic.twitter.com/o1n8mdQlh1
At the time of writing, Bitcoin was trading at $42,356.13, down by 4 percent in the last seven days.
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