Stock trader and blogger Justin Bennett believes that the market continues to have a “bullish trend”, and a reversal for bitcoin can only begin with a fall in the dollar index (DXY).
Cryptocurrency analyst Justin Bennett, in a show on his YouTube channel Cryptocademy, said that investors who wanted to buy Bitcoin at $30,000 would be disappointed. In his opinion, the first cryptocurrency will not fall in price below $35,000:
“Every second comment on my channel is from those who want to buy bitcoin for $30,000. I think it’s more likely, on the contrary, to move higher from $35,000-$36,000.”
Bennett bases his forecast on the dynamics of the dollar index (DXY), which is calculated as the ratio of the US national currency to a basket of six other fiat currencies – the euro, the Japanese yen, the pound sterling, the Canadian dollar, the Swedish krona and the Swiss franc.
According to the analyst, DXY plays a big role in the cryptocurrency markets. Bennett explained that a strengthening dollar index can signal weakness in other assets, while a falling index often indicates a higher value in other fiat currencies:
“Now DXY is still 95.5. It probably needs a value below 94.6 to reverse the Bitcoin trend.”
Justin Bennett, despite the opinion of other fellow experts, believes that the dynamics that the community is seeing are nothing more than short-term volatility:
“I don’t think the bull market is over. Markets don’t crash when everyone expects it, as it is happening now. My base scenario is another “melt” this year. Which will be followed by a correction at the end of 2022, or in 2023.
The analyst is confident that the BTC market will face a lot of volatility in the short term as the US Federal Reserve adjusts policy to the realities of the current economic situation. According to Justin Bennett, the community will have a few more “pretty interesting months” until the market stabilizes.
Crypto trading veteran Tone Weiss is also confident that the bitcoin market is still growing. The activity of institutional investors signals that he is in a “bullish trend,” the crypto trader believes. Another expert, Benjamin Cowen, believes that a return to the “bull trend” in the bitcoin market will only occur in three to nine weeks – if the NASDAQ and S&P 500 stock indices show a long rise. And writer and investor Robert Kiyosaki said he would buy more bitcoins if the BTC price drops to $20,000.
Source: Bits
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