The crypto continues to bleed in red even today. Bitcoin has dipped below $40K down by 1.3% in the last 24 hours. ETH is down by 5.3% and all other tokens on the chart follow suit. However, XRP defies the market trend as it trades up by 5.3%.
Justin Bennett, a crypto analyst, is examining recent chart action for the top two crypto assets and identifying the levels that must be reached in order to confirm bullish breakouts.
Bennett claims in the newest issue of his Cryptocademy newsletter that if Bitcoin (BTC) can hold the $40,000 support level, the top cryptocurrency might hit $50,000.
The analyst says after bouncing off $42,000 support this week, Bitcoin appears to be in good shape. That’s a $40,000-plus support area that we’ve been talking about for weeks.
To confirm the bullish breakout and open up the $50,000 region, buyers must take out $46,000 on a daily closing basis. As the yearly open is $46,200, so that will be a big factor.
“As long as Bitcoin is above $40,000, I believe it will continue to rise.”
At the time of writing, BTC is trading at $39,964. The immediate resistance is at $40K and the support downside is at $38,000 and a dip below would take the token to $32000.
Bennett then moves on to Ethereum (ETH), the most popular smart contract platform, and shows a graph that shows ETH’s decreasing trend from November of last year.
Ethereum is attempting to break out of a downward channel that began with the November highs and continues today.
In January, the market carved out a fake break/deviation. As a result, it’s no surprise to see ETH/USDT heading the other way.
According to the crypto guru, ETH needs to break through two key resistance lines to convince him that it can reclaim $3,600, a price it last saw on January 5th amid a catastrophic drop to the $3,400 range.
He says a convincing closing above $3,120 would likely maintain ETH’s upward trend.” However, I’d want to see buyers take away $3,280 in order to carve out that first higher high, exposing $3,600,” he added.
At the time of writing, ETH is trading at $2749 The immediate resistance is at $3000 and the support downside is at $2,159.