A closely followed strategist is looking at what’s in store for Bitcoin (BTC) after a surprise mid-week dip rattled the overall crypto markets.
In a new YouTube update, crypto analyst Justin Bennett plots out key support and resistance levels for the leading crypto by market cap.
As Bitcoin fights to retain the $40,000 level after losing 10% in just two days, Bennett believes it won’t crash down by another 25% or 50%.
“I think that any calls for $30,000 or $20,000 Bitcoin are very premature. Could it happen? Yes, I could very well be wrong, but at the same time, support is support until it isn’t.
So until we see Bitcoin close below those levels, they are intact as support.”
Bennett targets $39,600 as a key level that Bitcoin needs to hold, and despite BTC’s recent dramatic drop, advises against shorting the market.
“This area right here around $39,600 is going to be support. Yes, Bitcoin did break below $42,000 yesterday. However, trying to short this market right now in my opinion is ill-advised simply because it is still above that $39,600 level.”
Looking at BTC’s upside potential, the analyst indicates two resistance levels it would need to break in order for him to consider a return to $50,000 a viable possibility.
“As for resistance, it needs to get above $42,000 now and also that $46,000 region.
Remember that $46,200 is the yearly open for Bitcoin. It’s going to take a close above that level for the Bitcoin chart to really turn bullish toward the $50,000 region.”
At time of writing, Bitcoin is down 1.25% to $40,165. It has been above the $40,000 level since Feb 4th and briefly topped $45,000 back on Feb 10th.
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