Justin Bennett Explains How Bitcoin Can Recover Amid Rapid Correction

A top crypto analyst and trader, Justin Bennett explains how Bitcoin and the wider crypto markets could recover from a fast correction that shook off nearly $400 billion of its USD market cap value.

According to CoinGlass, over $882,000,000 in liquidations happened in a 24-hour span when Bitcoin corrected approximately 10%, dragging the rest of the market down with it.

The analyst shared with his 89K followers on Twitter that should Bitcoin lose support at $60K level, a further plunge to $55,000 could be next.

“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.”

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

Bennett also points out that crypto prices corrections of 20% to 30% are quite common, and Bitcoin is only 12% off its high.

#Bitcoin is 12% off its all-time high. 12%!

Yet people are acting like it's over.

Sound familiar?

20-30% pullbacks are routine. They're healthy.

You do you. I'll be here buying dips.

— Justin Bennett (@JustinBennettFX) November 16, 2021

A fellow crypto analyst Willy Woo was commenting similarly to a tweet addressing the fast crashes are nothing new to Bitcoin, but the key is its ability to recover and not collapse.

Crashing 4% in minutes is nothing. Bitcoin can do that day in, day out. The key to resilience is doing that yet never collapsing.

Welcome to real life. It is volatile. Fake stability is never free, when it goes wrong it’s 100% collapse. https://t.co/8QWmGaSRqI

— Willy Woo (@woonomic) November 17, 2021

To explain the crypto market performance, Bennett looks into US dollar index (DXY) which compares the USD to a basket of other major fiat currencies. Usually, a weaker US dollar reflects as higher prices in many assets, while a strong USD usually draws funds from other markets resulting in falling prices.

DXY is moving up in a large ascending channel, according to Bennett. DXY is at a resistance level and could revert back down, the analyst predicts.

“DXY just tested 95.80 resistance.

Now close the day back below 95.50.”

$DXY just tested 95.80 resistance.

Now close the day back below 95.50. ? pic.twitter.com/xucqXow9Zt

— Justin Bennett (@JustinBennettFX) November 16, 2021

Bennett has said that a falling USD could act as a potential under-the-radar catalyst that could send Bitcoin and the rest of the markets soaring.

The analyst believes that BTC finishes off the bull cycle well above the $200,000 level, but it will much longer time than many expect.

“I still think we see the same cycle peak for $BTC that I’ve mentioned in the past, somewhere between $207k and $270k.

But I am starting to think it could take longer to get there than most expect.

More capital AND time to push prices higher. Makes sense.”

There'd be nothing easy about going from $60k to $200k in six weeks.

Anyone that says #Bitcoin has done it before doesn't understand that going from $5k to $20k is very different than going from $60k to $200k.

That latter takes a lot more capital!

— Justin Bennett (@JustinBennettFX) November 16, 2021