A closely followed strategist is looking at what is in store for Bitcoin after a surprise mid-week dip rattled the overall coin markets.
In a new update, Justin Bennett plots out the key support and resistance levels for the leading cryptocurrencies by market cap.
Bennett thinks that it won’t crash down by another 25% or 50% as it tries to retain the $40,000 level after losing 10% in two days.
“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 advises against shorting the market despite the recent drop in prices, and targets $39,600 as a key level that Bitcoin needs to hold.
“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.”
The analyst indicated that two resistance levels 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 the time of writing, there was a decrease in the price of Bitcoins. It has been above the $40,000 level since Feb 4th, and briefly topped $45,000 on Feb 10th.
Featured photo source picjumbo.com