Bennett claims that if Bitcoin gets close to its all-time highs, the outlook could become optimistic.
"Any notion of a breakdown would be disproved if we saw the market rally from here [around $106,500], take out this level [above $109,000], begin to close up here, and press on this level."
The move lower would be deemed invalid if the market recovered $110,000 on the daily chart.
As of this writing, Bitcoin is selling at $107,560, almost 4% less than its peak of just around $112,000 in the past.