Crypto analyst Justin Bennett warns that Bitcoin (BTC) may be showing signs of a potential pullback, particularly as BTC whales are exiting long positions and building short positions against retail investors.

As of today, Bitcoin is trading at approximately $107,698, reflecting a 2% decrease over the last 24 hours.

Bennett suggests that this shift in whale activity could lead to a decline in Bitcoin's price, especially after the cryptocurrency failed to maintain key support at $106,600.

He predicts that if this trend continues, Bitcoin could drop to around $106,300 within the next 48 hours.

Despite the potential pullback, Bennett anticipates that Bitcoin could revisit the $100,000 level following a possible rally over the weekend, with a trading range of $106,000-$107,000 before any drop.

However, he emphasizes that he would not buy BTC at its current levels due to the recent loss of support, suggesting a short-selling strategy instead.

Bennett also warns that the USDT dominance chart (USDT.D) may indicate bearish trends for Bitcoin, as an increase in USDT.D suggests traders are moving into stablecoins.

He plans to wait for further confirmation on the USDT.D chart before making definitive predictions about Bitcoin's future price movements.

In addition to monitoring Bitcoin, Bennett advises traders to keep an eye on the performance of the S&P 500, noting that a dip below a critical level could trigger further declines in the stock market, which may impact Bitcoin's price.

Specifically, he highlights that if the S&P 500 fails to hold support at 5,960, it could revisit lows seen in April and May.

Overall, Bennett emphasizes that the current market for Bitcoin is range-bound and speculative, suggesting caution among traders.

Currently, Bitcoin is trading at $105,658, down 1.6% in the past 24 hours, while USDT.D is at 4.79%.