Crypto Analyst Justin Bennett: Bitcoin To Stay Bearish Short-Term

According to Justin Bennett, a prominent cryptocurrency analyst and trader, Bitcoin (BTC) might stay in bearish momentum in the short term.

In a recent video, Bennett shares with the subscribers to his YouTube channel that whenever Bitcoin has had a liquidation drop downwards in price this past year, BTC tends to first recover before breaking below the bottom of the liquidation candle’s low and then moving rapidly up.

Bennett highlights that the most recent liquidation candle for the leading digital asset from December 4th tested the $42,000 level.

“Right now Bitcoin is kind of in the process of filling in that lower wick.

But the question is, is it going to fill in that wick completely? Or is it just going to turn sideways to lower and then just balance from this area down here… right around $45,000.

Now if we use history as a guide here over the past year, and think about what I just showed you, Bitcoin, every single time there’s been a liquidation candle, it has not only retested that low but it’s actually moved just below it before moving higher.” 

The analyst believes that Bitcoin sink down all the way to $40K and then initiate a rally to higher levels in January.

At the time of writing, BTC is trading at $48,627, down 1% on the daily chart.