Crypto analyst and trader Justin Bennett says one price level for Bitcoin could determine what happens to BTC the rest of the year.
The closely followed strategist tells his 67,000 followers that he thinks a correction to the $40,000 range for Bitcoin seems logical, and that whatever happens after BTC hits that level could say a lot.
Looking at the weekly chart, Bennett posits that Bitcoin may be showing a similar pattern to April when BTC formed a local top.
“BTC also bottomed with a bullish engulfing week in July.”
After the breakdown, the analyst predicts BTC will likely bounce to a crucial price level where the leading crypto asset can make a decision that could determine the fate of BTC for the rest of 2021.
“$39,300 is where I think we’re heading.
From there, probably a bounce to $48,000 – $49,000 to decide whether we get a higher high or lower high… A lower high or higher high from there will be telling for the rest of the year if it happens.”
Looking at Ethereum, Bennett says that a close above a key resistance area is needed to confirm that this week’s sharp downturn was only a bear trap. Before that happens, the analyst says that the $3,300 area leaves ETH vulnerable to a further correction.
“ETHUSDT needs to close back above the $3,550 – $3,700 region to confirm that Tuesday’s selloff was a false break/bear trap.
Until then, the $3,330 support level is exposed with a close below that opening up $2,900.”