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.
I
Check Price Action
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/wacomka