In a recent warning to his followers on the social media platform X, crypto analyst and trader Justin Bennett expressed his belief that Bitcoin (BTC) has not yet completed its correction phase. Bennett pointed to the Tether dominance chart (USDT.D), which indicated a bearish trend for Bitcoin.

The USDT.D chart is closely monitored by traders as it reflects the proportion of the cryptocurrency market cap comprised of Tether (USDT), a stablecoin. A bullish USDT.D chart is typically interpreted as bearish for Bitcoin and other cryptocurrencies, suggesting that traders are favoring stablecoins over riskier assets.

Bennett predicted that the USDT.D chart would continue to rise after bouncing back from a critical support level. According to his analysis, the chart's levels have been consistently accurate since October. This projection led Bennett to suggest a possible further 20% drop in BTC, which would place it around $30,000.

Despite Bitcoin's recent rally to around $42,000, Bennett maintained his prediction and stated that Bitcoin could experience a relief rally to approximately $46,000 before retracing to his downside target. As of now, Bitcoin is trading at $41,851, marking a 4% increase in the past 24 hours.

Additionally, Bennett emphasized the significance of the US dollar index (DXY), which measures the value of the US dollar against six major currencies. He speculated that the DXY could undergo a bullish reversal, potentially exerting pressure on risk assets such as stocks and cryptocurrencies. Bennett identified resistance levels at 103.50 and 104.20 and believed that a sustained break above 104.20 in the coming weeks would indicate a shift from a bearish to a bullish trend.

A strong DXY suggests that investors are reallocating their funds into the US dollar and away from riskier assets like Bitcoin. The current DXY value stands at 103.47.

While Bennett's warnings may concern Bitcoin investors, it is important to note that market predictions are speculative and subject to change. Traders and investors should exercise caution and conduct thorough research before making any financial decisions.

Disclaimer: The above article is based on information provided by Justin Bennett and is not investment advice. Please consult with a professional financial advisor before making any investment decisions.