Closely followed crypto analyst Justin Bennett is mapping out a potential scenario where Bitcoin (BTC) gathers bullish momentum and surges toward the $50,000 level.
In a new strategy session, Bennett says that Bitcoin is currently trading within an ascending channel on the lower timeframe and looks poised to rally above $40,000 before the month comes to a close.
“If Bitcoin can break above these highs, right around $37,500, if we do get that breakout, I think we see $40,000, potentially up to $42,000 here over the next few days, basically before January closes out.”
At time of writing, Bitcoin is trading at $38,000.
Although Bitcoin looks bullish on the lower timeframes, the crypto strategist explains why bulls will likely face heavy sell-side pressure around the $40,000 price area.
“As long as Bitcoin stays inside of this ascending channel, then I’m looking for, as I said, that move up here toward $40,000 to $42,000 to really test this area because it is going to be a huge area for Bitcoin. You can see even as a horizontal area, over the past few months and in fact, over the last 12 months, this area has been incredibly significant. And the market is now trading below it on a daily and weekly closing basis.
So $40,000 to $42,000 is going to be the hinge for whether or not we see Bitcoin break out toward $45,000 to $46,000 or if we see another rotation lower over the coming weeks.”
Should Bitcoin bulls manage to overcome resistance at $42,000, Bennett says a breakout could push BTC to as high as $50,000.
“We would need to see Bitcoin actually break above $42,000, close above $42,000 to expose $45,000 to $46,000 and potentially $50,000. Until that time comes, $40,000 to $42,000 is going to be very strong resistance.”
ICheck Price Action
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/3000ad/Andy Chipus