A closely watched crypto analyst warns that a Bitcoin (BTC) correction may be looming following the crypto king’s strong performance last week.
In a new blog post, trader Justin Bennett says that BTC has launched an “impressive” rally since June 15, rising about 25% in just under two weeks.
However, Bennett says Bitcoin will soon give up some of its gains as he believes the crypto king isn’t giving free rides to those who were too late to jump on the rally.
“If so, a pullback to the $28,000 area to flush late BTC longs seems likely.
How Bitcoin’s price action develops at $27,000 – $28,000, if and when tested, will determine where BTC trends are in July.
According to the crypto strategist, his near-term bearish view would be invalidated if Bitcoin manages to clear its immediate resistance at $31,000.
“Alternatively, a sustained break above $31,000 would suggest that bulls remain in control and expose $32,500.”
At the time of writing, Bitcoin is trading at $30,802.
Bennett also keeps an eye on the Tether dominance chart (USDT.D), which tracks the percentage of capital in crypto stored in the stablecoin USDT. Traders are keeping an eye on the Tether dominance chart as bullish moves suggest that market participants are unloading their crypto stacks to protect the value of their capital in stablecoins.
Bennett tells his 112,400 Twitter followers that a move above the 8% level for USDT.D could put BTC at risk for a significant correction.
“Look for a move to the 8% hold, which equates to a roughly 10% pullback for Bitcoin.”
At the time of writing, USDT.D is hovering at 7.23%.
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Image generated: Midway through the journey
