Could 2024 be a disappointment for quick profit hunters in the cryptocurrency market? A closely followed analyst raises this question, highlighting the possibility of long-term consolidation in the market.
Cryptocurrency expert Justin Bennett says that he closely follows the total market value (TOTAL) chart of the market in his predictions on the social media platform. In the chart he shared, Bennett predicts that TOTAL may repeat the 2019 price movement and experience a sharp correction of around 70% after rising to the 61.8% Fibonacci retracement level.
2024: A Positive or Negative Year for the Cryptocurrency Market?
According to the analyst, the entire cryptocurrency market may lose value and consolidate over the next 12 months, but there is also the potential to reach new historical highs later. Bennett invites crypto investors to consider these questions:
âWhat if everyone misunderstood the timing of the Bitcoin bull market?â
âWhat if cryptocurrencies continue to trend sideways for the next 12 months? Even if it falls?â
âPeople say 'something like this will never happen again' because the most recent crash was linked to COVID-19 and was a one-time event.â
âYes, it was a one-time incident. But markets don't repeat themselves, they just show similarities.â
âIn summary: Check your leverage before emotionally considering this possibility!â
Bennett's chart predicts that total market capitalization could fall to around $700 billion by the end of this year, but could reach a new historical peak of over $4 trillion in 2025. At the time of writing, TOTAL is trading at $1.653 trillion, meaning it could lose about 57% of its value if it reaches the analyst target level.
On the Bitcoin (BTC) side, Bennett thinks the bears will have the upper hand as long as the crypto king remains below $44,500.
âAfter weeks of testing the channel resistance I shared (one-on-one), $44,500 is now the resistance point for BTC. Bulls must regain that level on higher time frames to have a chance of reaching $50,000. However, it is necessary to be careful when it is below that limit.â
Bitcoin is currently trading at $43,029.
