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Seasoned price action trader Justin Bennett sharing his Bitcoin chart, revealed that Bitcoin had formed a descending triangle chart pattern, noting that the price target is $5,000.

“Since late May, BTC has formed a descending triangle.

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The objective of this pattern is $5k. Yes, that.

This is probably a worst-case scenario for Bitcoin, and $12k comes before this. But don’t rule it out,” said Bennett.

It bears mentioning that it is the second time in recent months that Bennett has predicted that Bitcoin will plummet below $10k. Notably, on July 12th, in a YouTube video, Bennett asserted that Bitcoin is steering to $8,500. According to the market analyst, traders should exercise caution in the crypto markets as he believes the current bear market differs from any we have ever seen. Bennett says it is the first time the Bitcoin market has faced such macroeconomic conditions.

Notably, Bitcoin remains under enormous selling pressure. On-chain analytics platform, Santiment reported that over 1.69 million BTC (approximately $33.5 billion) was moved to exchanges from September 7th to September 13th alone. According to the on-chain analytics firm, it is the highest since October 2021, less than a month before several crypto assets, including Bitcoin, created new all-time highs.

Bitcoin and, indeed, the entire crypto and equity markets have had a challenging year. Most leading crypto assets are over 70% lower than peaks formed in November. The lacklustre price movement has been attributed to the worsening macroeconomic conditions as inflation remains at record levels globally following excessive money printing during the pandemic.

The latest inflation data from the US shows that inflation rose by 8.3% year-on-year in August, 20 basis points higher than economists projected. Consequently, economists expect a 100 basis point rate hike from the Fed this week.

BTCUSD Chart by TradingView

Unless there is a narrative change, the continued selling pressure combined with persistent rate hikes may push the price of the leading asset lower. Bitcoin is trading at the $18,820 price point, 15.89% lower than it was seven days before.

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One thought on “Seasoned Price Action Trader Says Bitcoin Price Headed For $12,000 – $5,000 Crash Floor

  1. I was wondering, the whole purpose of non-kyc bitcoin is for them not to be tied to your identity, so we keep them on cold storage and wait. So if they are not tied to our identity, I think that most of us don’t declare them to our national tax agency.

    The question is, what happens if in the future, bitcoin price goes very high and we end up with money enough for, let’s say, buy a house.

    Of course we won’t be able to justify that amount of money. Even if we don’t sell our bitcoin for fiat and the house seller accepts bitcoin, you’ll end up being owner of a house that “you can’t afford” according to your declared income.

    This got me thinking, will in the future (let’s say 10 years) our NON-KYC bitcoin only be usable for groceries, gas and small cash purchases? If not, how could we in the middle of the way to the moon, suddenly declare “oh I forgot, I had this bitcoin for a few years”.

    Thoughts?

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