Justin Bennett: Rest of The Year 2021 For Bitcoin Depends On One Key Level
According to Justin Benett, a popular cryptocurrency trader and analyst and trader, Bitcoin’s rest of the year is depending on one key price level.
Bennett shares with his 67K Twitter followers his prediction that a correction to the $40,000 range for Bitcoin makes sense, and if that happens how the largest crypto moves then will give an indication how the rest of the year will go.
“A pullback to the $40,000 key weekly level makes a lot of sense here.
That doesn’t mean it will happen, but it’s a scenario worth considering.”
The trader suggests that Bitcoin might be showing a similar pattern to April when BTC formed a local top.
“BTC also bottomed with a bullish engulfing week in July.”
Still early in the week, so this could change, but it's also worth paying attention to.
This week is (potentially) the third engulfing week since the mid-April correction started. $BTC also bottomed with a bullish engulfing week in July. pic.twitter.com/5y9nf8TLN7
Bennett predicts that Bitcoin will likely bounce to a crucial price level where the leading crypto asset can make a decision that could determine the fate of BTC for the rest of 2021.
“$39,300 is where I think we’re heading.
From there, probably a bounce to $48,000 – $49,000 to decide whether we get a higher high or lower high… A lower high or higher high from there will be telling for the rest of the year if it happens.”
Ethereum (ETH)
According to Bennett, Ethereum needs to close above a key resistance area to confirm that this week’s sharp downturn was only a bear trap. Before that happens, the $3,300 area leaves ETH vulnerable to a further correction, he continues.
“ETHUSDT needs to close back above the $3,550 – $3,700 region to confirm that Tuesday’s selloff was a false break/bear trap.
Until then, the $3,330 support level is exposed with a close below that opening up $2,900.”
