Recent warnings indicate that Bitcoin may experience a significant decline in value. Crypto expert Justin Bennett highlighted that Bitcoin has already lost 2.2% over the past 24 hours and could fall more than 8% shortly. Bennett’s remarks, shared on social media, suggest that Bitcoin is heading toward a critical point defined by the CME gap, aligning with its trend line for 2023.
What is the CME Gap?
The CME gap represents the price discrepancy between Bitcoin’s close on Friday and its open on Monday at the Chicago Mercantile Exchange. Bennett noted that this gap could create downward pressure on Bitcoin’s price. He emphasized that a crucial technical level exists at $77,360, and while there might be a slight recovery in March, the February close above $92,000 is essential to avoid strong resistance on the monthly chart.
How Does Tether Affect Bitcoin’s Market?
Bennett is also tracking Tether‘s market dominance, represented as USDT.D, which indicates the stablecoin’s market share. An increase in USDT.D might imply that traders are converting their assets into Tether, suggesting cautious market behavior. He believes support for Bitcoin may emerge in March if certain levels are maintained, particularly if the support level at 4.97 holds firm.
The analysis underscores the necessity for traders to remain vigilant regarding Bitcoin’s price movements. Here are the key points drawn from Bennett’s insights:
- Bitcoin could see a potential drop of over 8% soon.
- A critical resistance level exists at $92,000 for February.
- Investors should closely monitor USDT’s market share as it may indicate shifts in trading behavior.
Bitcoin’s current trajectory is influenced by technical indicators and support-resistance levels, urging traders to pay attention to these signals. The market’s short-term fluctuations may reflect broader trends, making it crucial for participants to stay informed and proactive.
