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.”
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