What Happened: Bennett took to social media to highlight that the meeting minutes are not a Fed rate decision, which is why does not expect as much volatility as typically seen from a Fed rate decision.
The trader further discussed his bearish stance on Bitcoin, which he adopted after the market lost a certain area.
He predicted that Bitcoin might come down and clear out the longs that have built up, especially with the FOMC meeting minutes coming up. He suggested that the best way to trade this current range is to wait for a sweep down of these longs toward low $61,000, then a reclaim up potentially for the move higher.
Bennett discussed various scenarios, including the possibility of Bitcoin moving down towards levels like $59,000 and $57,000, due to market structure and the liquidity that’s built up in these areas.
He also mentioned the potential for a bounce from $57,000, expecting a lot of demand if Bitcoin were to reach this level. Bennett stated that his invalidation level for BTC is mid $64,000 and if Bitcoin gets above this mark, he anticipates a move back towards highs like $70,000 to sweep those shorts.
With the U.S. election season coming up, Bennett expects markets to de-risk, regardless of whether Bitcoin hits $57,000 or $70,000. He concluded by advising traders to expect games this week with FOMC minutes and U.S. CPI and PPI coming up.
What's Next: These discussions, along with the future of stablecoin regulation, will be central topics at the upcoming Benzinga Future of Digital Assets event on Nov. 19.
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