According to Justin Bennett, a cryptocurrency analyst, market breakdowns don’t always happen when everyone expects them to.
Bennett informs his 97,800 Twitter followers that the crypto bull market is still alive and well, but that a correction is months away.
“I don’t think the crypto bull market has ended.
Markets don’t crash when everyone expects them to, and right now, everyone expects it.
My base case is for one more melt-up this year, followed by a correction in either late 2022 or 2023.”
Bennett believes the Federal Reserve will not aggressively raise interest rates and reduce asset purchases, preferring to “select market stability over controlling inflation,” particularly if the “stock market corrects more.”
According to the crypto researcher, if the Federal Reserve is forced to stay “accommodative,” volatility would rise.
“So that means we could be in for more volatility in the short term if the stock market is going to strong-arm the Fed into remaining accommodative for longer.
But ultimately, I don’t think this crypto bull market is over just yet. It’ll be an interesting few months regardless.”
In a message, Bennett also predicts that if Bitcoin can maintain above $35,000, it will rise to the resistance level between $40,000 and $42,000.
According to the crypto researcher, if the flagship cryptocurrency goes below $35,000, it might plummet by about 20%.
“For now, it’s a matter of Bitcoin staying above the $35,000 area. Do that, and $40,000-$42,000 is the resistance area to break, followed by $45,000-$46,000.
On the other hand, a daily close below the $35,000 region would open the door to $30,000.”
At the time of writing, Bitcoin was trading at $36,655.
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