Closely followed crypto strategist and trader Justin Bennett is mapping out what’s ahead for Bitcoin (BTC) and Ethereum (ETH) as the crypto markets show signs of uncertainty.
In a new strategy session, Bennett says that Bitcoin must surmount a crucial critical resistance level to open up the path to recovery above $50,000.
“What it’s going to take right now from Bitcoin is a close above the $46,000 area… to confirm the breakout, flip that area to support. Now $46,200 is going to be key because that’s the yearly open…
So, $46,200 is going to be absolutely critical. We need to see Bitcoin close above that to confirm the breakout. If it does and we see a daily close above $46,200, then this area [$45,659 to $46,215] becomes support, and the next stop is going to be $50,000 to $53,000.”
Bennett also says that Bitcoin could potentially retrace before it takes off.
“But I do also think that there’s a good chance we could see a pullback into support down here, maybe around $42,000, maybe just below it, before we get that move higher.”
Bitcoin is trading at $43,385 at time of writing.
Turning to Ethereum, Bennett says that the second-largest crypto asset by market cap needs to turn the $3,200 resistance level to support in order to surge higher.
“Ethereum has to get above this trend line up here, up around $3,200, maybe $3,250. So it needs to clear this area on a daily closing basis to flip it to support and expose $3,600. In the meantime, if we were to see a pullback, keep an eye on $2,800 to $2,900.”
Bennett is also considering the possibility of a bullish pattern emerging for Ethereum.
“Keep in mind, too, that there is a chance if we see a bounce from there, if we see a pullback to this area [$2,800 – $2,900], then look what we could have forming here: inverse head and shoulders.
Traders see the inverse head and shoulders formation as a bullish pattern indicating that a major market reversal is in sight.
Ethereum is trading at $2,943 at time of writing.
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