Analyst Justin Bennett has predicted a drop in the bitcoin exchange rate to $55 000

He added that for BTC and the entire cryptocurrency market, a correction of 20-30% is the norm

17.11.2021 - 11:45

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2 min

What’s new? According to trader Justin Bennett, bitcoin is currently in a “sticky zone.” The analyst said so on his Twitter account, explaining his view that the first cryptocurrency is trading near the $60 000 support level. If the asset overcomes this mark, its exchange rate will drop to $55 000, Bennett believes. He added that the nearest resistance level is around $63 300.

Looks like yesterday's $BTC bearish engulfing candle was a sign. Not sure if we're out of this just yet, but there's a lot of support around $60,000. I'll look to $55,000 unless #Bitcoin can reclaim $63,300. https://t.co/ajpnm1myBN pic.twitter.com/PBriDcXD2Z— Justin Bennett (@JustinBennettFX) November 16, 2021

What else did the analyst say? The trader highlighted that many market participants have already started to panic, even though the price of the BTC has decreased by only 13% from its all-time high of $69 000. He explained that for bitcoin and the entire cryptocurrency market, a correction of 20-30% is the norm.

On November 16, the bitcoin exchange rate was hovering at a two-week local low of $58 500. As a result, traders' positions worth over $800 million were closed en masse.

What is the reason for the rate drop? The drop in the rate may be a consequence of the implementation of new reporting rules for cryptocurrency brokers and operators in the United States. The US President Joe Biden signed a law requiring companies dealing with digital assets to report transactions over $10 000 to the tax service.

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