Popular crypto analyst Justin Bennett thinks Bitcoin (BTC) could be in for more bearish price action in the short term.
In a YouTube analysis, Bennett notes that whenever BTC has had a liquidation wick downwards in price this past year, the leading crypto asset tends to initially recover before breaking below the bottom of the liquidation candle’s low and fully bouncing upwards again.
The crypto analyst points out that Bitcoin’s most recent liquidation candle from December 4th tested the $42,000 range.
“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.”
Bennett predicts BTC could move downwards all the way to $40,000 and then rally higher in January.
Bitcoin is trading at $49,147.61 at time of writing, up more than 4% in the past 24 hours.
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