In recent months, the cryptocurrency market has fluctuated between highs and lows. On Sunday, the total crypto market volume fell by 22.79 percent to $69.25 billion in the last 24 hours.
As the crypto markets show symptoms of volatility, Justin Bennett, a well known crypto strategist and trader, is laying out what lies ahead for Bitcoin (BTC) and Ethereum (ETH).
Bennett claims that Bitcoin needs to overcome a significant resistance level to open the way to a rebound above $50,000 in a new strategy session.
He says, right now, a closing above the $46,000 level is required from Bitcoin.Flip that area to support to confirm the breakout. Now, $46,200 will be crucial because it is the yearly open.As a result, $46,200 is going to be crucial, he added.
To confirm the breakout, Bitcoin must close above that level. If it does, and we have a daily close above $46,200, this region [$45,659 to $46,215] becomes support, with $50,000 to $53,000 being the next stop, according to him.
Bitcoin, according to Bennett, may retrace its steps before taking off. Before we get that move higher, BTC could see a retreat into support, possibly around $42,000 or just below it, he said.
Bitcoin is now trading at $42,637 up by 0.7% in the last 24 hours. The resistance is at $43K, a fall below will see support at $42,500.
When it comes to Ethereum, Bennett believes the second-largest crypto currency by market capitalization needs to flip the $3,200 resistance level into support in order to continue to rise.
Ethereum needs to break out above this trend line, up about $3,200, maybe $3,250. To flip it to support and expose $3,600, it must clear this region on a daily closing basis. In the meantime, keep a watch on $2,800 to $2,900 if we see a pullback, he explains.
Bennett is also evaluating the likelihood of Ethereum forming a bullish trend.
“Keep in mind, too, that if we see a recovery from there, if we see a pullback to this level [$2,800 – $2,900], look what we may have forming here: an inverse head and shoulders pattern.”
The inverse head and shoulders pattern is viewed as a bullish pattern by traders, indicating that a large market reversal is imminent.
At the time of writing, ETH is trading at $2941 up by 0.8% in the last 24 hours. The resistance is at $3000 and the support on the downside is at $2,870.