Justin Bennett: BTC And ETH Look To Be Setting Up For A Breakout
According to a prominent crypto analyst, Justin Bennett, Bitcoin (BTC) and Ethereum (ETH) appear to be getting ready to move up to higher levels.
Bitcoin (BTC)
In recent video session, Bennett projects that Bitcoin is about to make a trend reversal.
“Right now we have step one of the reversal taking shape. I also want to talk about the volume here before we go to step two because the volume is starting to increase.
The other day I mentioned that it was likely we’d see a rotation lower down here into support potentially around $35,000-$36,000, and we did see a low right around $36,000. The reason I thought we’d get that rotation is because if you look at the volume here during this latest relief rally, when the market was making higher highs and higher lows like this, the volume was decreasing, which hinted at a lack of conviction from buyers. Today we are seeing the volume start to break that trend, which is great to see.”
The analyst points out that Bitcoin has broken out from its relative strength indicator (RSI) trendline. RSI helps to indicate the level of price changes to shed light if an asset is overbought or oversold. Bitcoin breaking from its RSI trendline is step one for reversal breakout, according to Bennett.
“The second step to confirming this breakout, and we’ve already seen the RSI breakout from this trendline, which was step one, step two is going to be close above $40,000 to $42,000. A close above $40,000 would be great, however, I really want to see a close above $42,000…
It doesn’t have to happen today, but we do need to see a daily close and especially if we got a weekly close this Sunday above $42,000, that would really confirm the reversal for me, [and] expose $45,000-$46,000 and probably $50,000.”
While the analyst believes that the leading digital asset is on the verge of large up move, he points out that it could take some time for the reversal to be completed.
“I would be surprised to see Bitcoin punch through it in one or two days, it could take a few days here, but the momentum right now is pretty strong… I would not be surprised at all to see over the coming days Bitcoin close back above that area, flip it back to support, fake out everyone who thought it was going to $30,000…
If it did close above $42,000, that would confirm the bullish breakout for me now.”
At the time of writing, Bitcoin is trading at $43,448, down 1.76% on the daily chart.
Ethereum (ETH)
Bennett also projects that the second largest crypto asset by market cap Ethereum is preparing to move up – the key level to claim is $3,256.
