A widely-followed crypto analyst says leading digital assets Bitcoin (BTC) and Ethereum (ETH) are setting up for breakouts.
In a new YouTube update, crypto trader Justin Bennett tells his 9,600 subscribers that Bitcoin is on the verge of a massive reversal.
“Right now we have step one of the reversal taking shape. I also want to talk about the volume here before we go to step two because the volume is starting to increase.
The other day I mentioned that it was likely we’d see a rotation lower down here into support potentially around $35,000-$36,000, and we did see a low right around $36,000. The reason I thought we’d get that rotation is because if you look at the volume here during this latest relief rally, when the market was making higher highs and higher lows like this, the volume was decreasing, which hinted at a lack of conviction from buyers. Today we are seeing the volume start to break that trend, which is great to see.”
Bennett highlights how Bitcoin has already broken out from its relative strength indicator (RSI) trendline, a momentum indicator measuring the magnitude of price changes to analyze overbought or oversold conditions. Bennett says BTC breaking from its RSI trendline is step one of Bitcoin’s reversal breakout.
“The second step to confirming this breakout, and we’ve already seen the RSI [relative strength indicator] breakout from this trendline, which was step one, step two is going to be close above $40,000 to $42,000. A close above $40,000 would be great, however, I really want to see a close above $42,000…
It doesn’t have to happen today, but we do need to see a daily close and especially if we got a weekly close this Sunday above $42,000, that would really confirm the reversal for me, [it would] expose $45,000-$46,000 and probably $50,000.”
Though Bennett is confident BTC is on the edge of major gains, he says it could still take the leading crypto asset by market cap some time to complete the reversal.
“I would be surprised to see Bitcoin punch through it in one or two days, it could take a few days here, but the momentum right now is pretty strong… I would not be surprised at all to see over the coming days Bitcoin close back above that area, flip it back to support, fake out everyone who thought it was going to $30,000…
If it did close above $42,000, that would confirm the bullish breakout for me now.”
Bitcoin is trading for $45,362 at time of writing, up 3.27% on the day.
Bennett also foresees an impending breakout for leading smart contract platform Ethereum.
“ETH is going for the breakout.
Needs a daily close above [$3,256] to confirm.”
Ethereum is currently trading for $3,210.89, just south of Bennett’s daily close target for ETH.
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