A well-known analyst is looking at what’s next for Bitcoin (BTC) after the overall crypto markets were shaken up by a surprise dip in the middle of the week.
In a new YouTube video, Justin Bennett, a crypto analyst, shows where the top crypto by market cap has support and resistance points.
Bennett thinks Bitcoin won’t fall any further after losing 10% in two days. He thinks it won’t fall any further by 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 says that Bitcoin needs to stay above $39,600, and he doesn’t think it’s a good idea to short the market, even though BTC has dropped a lot recently.
“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.”
It would have to break two points in order for the analyst to think that a return to $50,000 would be a real 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.”
It’s down 1.25 percent to $40,165 at the time of this writing, but it’s still a good deal. It has been above the $40,000 level since February 4th. It briefly hit $45,000 on February 10th.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.