​Analyst Justin Bennett predicts crypto market recovery soon

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 most bullish signal right now for #crypto is the Tether dominance chart, IMO.This moves inversely to crypto and is currently breaking down. Unconfirmed as of now. Weekly close will be key.$USDT.D $BTC $ETH pic.twitter.com/HxR0DpgRiy — Justin Bennett (@JustinBennettFX) November" class="redactor-linkify-object">https://twitter.com/JustinBennettFX/status/1588617... 4, 2022

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.

A $26k $BTC peak is still on the table, IMO. It didn't occur by #FOMC, but it's still valid.However, a few things need to occur, including #Bitcoin getting above $22,800 and the $DXY closing below 109.30 next week, among other things.There are no easy tasks here. https://t.co/99M4kI3qG6 pic.twitter.com/DrXedVxSGl — Justin Bennett (@JustinBennettFX) November 4, 202

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

I can't stress enough how significant 109.30 will be for the $DXY next week. The confluence there is massive. 2022 trend line, descending channel support, and key monthly level.Close below = extended #crypto rallyBounce aggressively = crypto pullback$BTC $ETH pic.twitter.com/7Roj1eKiSl — Justin Bennett (@JustinBennettFX) November 4, 202

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.