Justin Bennett Draws A Critical Support Area For Bitcoin (BTC)
Justin Bennett, a prominent crypto market analyst, believes that Bitcoin (BTC) could still break out of the existing bearish momentum, as long as it holds a critical support level.
In recent video update, Bennett shared with his YouTube channel subscribers key levels to follow in order to make sense of the next moves for the leading digital asset Bitcoin.
“Bitcoin is at a critical support area… between $35,000 and $37,000.
Bitcoin is still holding above support. Yes, I realize that the charts don’t look great. The fundamental picture has a lot of obstacles ahead.”
Bennett is not going to flip bearish on BTC before the $35,000-37,000 support level breaks. The latest price movements indicate that Bitcoin has a chance to stage a bullish reversal pattern and move higher.
“Patterns like this, especially after a sell-off like we’ve seen, not just over the past few days but past few weeks and months, typically tends to trigger a bullish reversal.
This is a bullish pattern, typically speaking. Obviously, a close below this area down here (approx. $36,800) would negate this idea. Right around the high $36,000’s and the $35,000 level like I’ve talked about before.
If we were to see Bitcoin give up this zone, this whole thing is off the table and we’re probably headed back toward $30,000.
But overall, this pattern does hint at exhaustion from sellers. A broadening descending wedge like this, it’s very similar to a falling wedge where it signals exhaustion from sellers.”
A key level to watch for confirmation of the bullish pattern to happen is $39,000 and above.
“The confirmation for this pattern would be a close above this area up here ($39,000 to $39,600). Get above this trend line on the hourly, which would come in somewhere around the low $39k’s, and then also $39,600.
Remember, that’s going to be a key level going forward to where we need to see Bitcoin close the day above $39.6k.”
The analyst notes that BTC hit very similar lows back in September and October last year, and also this past January, both which were followed by rallies.
“In order to confirm this wedge pattern, I would like to see Bitcoin get above this resistance area up here ($39,000) on the hourly and then also get above $39,600 on the daily time frame.
So that means close the day above this area ($40,100) and then I do think we get that breakout.
Of course, we could see another rotation lower, in which case this area right below $37,000 is going to be support.”
At time of writing, BTC is trading at $36,935, down 16% on the weekly chart.
