In the fast-paced world of cryptocurrency, renowned analyst and trader Justin Bennett is sounding the alarm bells, suggesting that Bitcoin (BTC) may be on the brink of a significant market correction. Bennett, who commands a substantial following of 110,700 on the social media platform X, has shared his concerns about a potential 74% decline from Bitcoin’s current value, emphasizing the importance of being prepared for unexpected market events.

According to Bennett, there are ominous signs reminiscent of the 2020 market crash triggered by the onset of the COVID-19 pandemic. He points to a potential price pattern repetition and highlights the possibility of Bitcoin revisiting the $10,000-$15,000 range if a black swan event were to trigger a severe correction.

“Sure, COVID was a black swan, but it’s not like we don’t have a laundry list of systemic issues to choose from this time around. The chart speaks for itself,” warns Bennett.

Analyzing his monthly chart, Bennett suggests that Bitcoin could face a significant downturn, potentially reaching the diagonal support level observed during the pandemic. The trader notes that Bitcoin’s resistance at the Fibonacci retracement level of 0.768 could play a crucial role in determining the extent of the correction.

Bennett challenges the conventional belief that Bitcoin’s upcoming halving event in April is an automatic catalyst for a rally. Contrary to this notion, he argues that macroeconomic conditions play a pivotal role in determining market cycles, stating, “Bitcoin is programmed to go up because of the halving, right? Wrong… The halvings are a critical component of the tokenomics that make Bitcoin an incredible long-term hold. But economic data rules all in determining cycle tops and bottoms.”

On the Ethereum front, Bennett notes a potential downtrend as the cryptocurrency struggles to maintain the key $2,400 level as support. This observation adds another layer to his cautious outlook for the broader crypto market.

Additionally, Bennett draws attention to the performance of the Euro against the U.S. dollar (EUR/USD), indicating that the broader crypto market might be entering a downward trend. “The fiat currency market is once again flashing warning signs about what could be next for Bitcoin and the rest of the crypto market,” he states.

Despite the upcoming halving event for Bitcoin scheduled for April, Bennett dispels the notion that it will automatically trigger a rally. He underscores the significance of macroeconomic conditions, asserting that economic data holds sway over market cycles. “The halvings are a critical component of the tokenomics that make Bitcoin an incredible long-term hold. But economic data rules all in determining cycle tops and bottoms,” cautions Bennett.

Turning his attention to Ethereum (ETH), Bennett expresses concern about its potential downtrend after failing to maintain the key $2,400 level as support.

In the world of cryptocurrencies, where volatility is the norm, investors and enthusiasts alike must stay vigilant and well-informed. The cautionary notes from analysts like Bennett serve as a reminder that the crypto market is not immune to fluctuations and external factors that can significantly impact asset values.

As investors and enthusiasts eagerly await the future trajectory of the cryptocurrency market, it remains to be seen how Bennett’s warnings will impact market sentiment. Traders are advised to exercise caution and stay vigilant in the face of potential market fluctuations.