The expert believes that BTC is ready to rise to $26 000 under certain conditions

​Analyst Justin Bennett predicts crypto market recovery soon

07.11.2022 - 09:45

280

4 min

The material is not an investment recommendation and is published for information purposes only.

What’s new? According to crypto analyst Justin Bennett, a bullish signal for the digital asset market is the Tether (USDT.D) stablecoin dominance chart. He noted that on November 4, USDT.D was on the verge of breaking the diagonal support, which has kept the metric in an uptrend since November 2021. According to Bennett’s prediction, the metric should have been at 6,91% at last week’s close. As of November 7, at 10:00 UTC, it stands at 7,09%.

The dominance chart reflects the asset’s share of the total capitalization of the crypto market. The bearish USDT.D chart is traditionally interpreted as a bullish signal for bitcoin and the entire market.

What else did the analyst report? Bennett believes that bitcoin could reach the $26 000 mark by December, but several events must occur for that to happen. For example, BTC must rise above $22 800 and the US dollar index (DXY) must fall below 109,3 points by this week’s close. If the latter condition is met, the market is expected to grow steadily, the expert added.

BTC is trading at $20 738, down by 2,38% in 24 hours, according to Binance. DXY is 110,44 (-0,4%), according to Investing.com.

Bennett added that closing the DXY above the 109,3 mark could lead to a decline in asset rates.

The drop in the share of USDT and the DXY index indicates that investors are moving away from the safe-haven US dollar and into risky assets such as bitcoin and other cryptocurrencies.

On November 2, the US Federal Reserve System (Fed) raised interest rates again by 75 basis points. According to analyst Michaël van de Poppe’s prediction, the market will remain “neutral” with this hike, with high volatility there will be no clear signals of a move to a bull market or a stronger bearish trend.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy