Cryptocurrency analyst Justin Bennett has warned about a possible downturn in Bitcoin‘s BTC/USD value.
Last Friday, in a post on X, formerly Twitter, Bennett suggested that Bitcoin may not have reached its market bottom yet. His prediction was based on the Tether dominance chart USDT/USD, which he believes is a crucial indicator for forecasting Bitcoin’s trajectory.
“The bottom is not in for BTC IMO (in my opinion). Maybe we see a mid $44,000 retest, but even markets like Tether dominance USDT.D are signaling another leg lower. This moves inversely to Bitcoin,” he said.
The USDT chart, which tracks the market cap share of the stablecoin Tether (USDT) in the crypto market, is often seen as a bearish signal for Bitcoin when it rises.
This trend suggests a move away from volatile cryptocurrencies to the more stable USDT. Bennett’s interpretation of this trend indicates a potential decline for Bitcoin, which is currently priced at $42,979 at the time of writing.
Additionally, Bennett noted similarities between the current SPX trends and Bitcoin’s behavior during its 2021 peak, suggesting possible implications for Bitcoin’s future movements.
“SPX vs 2021-2022 BTC top. The moment of truth is coming up, and the 5,000 psychological number is less than 1% away. Not calling for a top, just sharing an observation,” Bennett said in the post.
Earlier in Dec, Bennett suggested that Bitcoin could be heading toward a bearish trend, potentially dropping to the $38,000 mark.