Crypto trader Justin Bennett warns two digital assets face further downward pressure as markets take a beating.
Starting with Bitcoin (BTC), the analyst predicts the flagship crypto asset hasn’t bottomed out yet.
According to Bennett, the S&P 500 stock index has not yet entered bear territory but will fall further if an economic recession materializes, potentially pulling Bitcoin further down as the two are strongly correlated.
“I don’t think the low is in for Bitcoin just yet. Even a move to $16,000 may only provide some temporary relief given that we appear to be entering a recession and the S&P is off its all-time high by just 19%.”
Bitcoin is trading for $19,092 at time of writing.
Next up is the smart contract-enabled blockchain Solana (SOL). The crypto trader says SOL is likely to fall by about 36.8% from its current levels based on the technical analysis of its weekly chart.
“Judging by the weekly time frame, a retest of the $20 region seems likely in the coming weeks.
Key resistance for SOL comes in between $37.40 and $39.25.”
Solana is trading for $31.64 at time of writing.
The crypto analyst also takes a look at the second-largest digital asset by market cap, Ethereum (ETH).
According to Bennett, Ethereum could potentially fall by over 20% from the current levels if it closes below the $1,050 price.
“The bigger level for ETH is $1,050. It’s going to take a daily close below that to open up lower levels, including $900 and potentially $780.”
Ethereum is trading for $1,019 at time of writing.
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