Crypto analyst Justin Bennett is issuing a warning on Bitcoin (BTC<\/a>) as the flagship crypto asset making double-digit gains over the past week.<\/p>\n Bennett tells<\/a> his 110,800 followers on the social media platform X that Bitcoin could correct by 54% from the current level based on the historical correlation between BTC and stocks.<\/p>\n According to the crypto trader, a steep stock market correction could trigger a Bitcoin collapse, similar to what happened in February and March of 2020 when the S&P 500 stock index plunged by 25%. During that period, Bitcoin fell by around 50% from about $10,500 to about $3,782.<\/p>\n \u201cFor the record, I still think BTC sweeps the $25,000 lows and possibly the $15,000 lows.<\/i><\/p>\n Difficult to believe until you look at equities, namely S&P 500 index and that 3,255 area.<\/i><\/p>\n How would a 23% correction from the S&P affect Bitcoin?<\/i><\/p>\n Impossible to know for sure but we know what happened during the last 25% correction.<\/i><\/p>\n Let\u2019s see.\u201d<\/i><\/p>\n Bennett foresees the S&P 500 index falling to around 3,255 points, a support level that was a resistance level in 2020 before converting to a support level in 2021. The 3,255 level also aligns with the index\u2019s long-term ascending trend line, based on Bennett\u2019s chart.<\/p>\n Bitcoin is trading at $34,050 at time of writing, while the S&P 500 index is at around 4,170 points.<\/p>\n The crypto trader also says<\/a> that despite Bitcoin demonstrating \u201cexceptional strength against equities\u201d this month, the divergence is not permanent as \u201ccorrelations ebb and flow just like markets.\u201d<\/p>\n \u201cIf equities puke here, it\u2019s only a matter of time before crypto follows.\u201d<\/i><\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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