Crypto analyst Justin Bennett is analyzing recent chart action for the top two crypto assets, naming the levels they must reach to confirm bullish breakouts.
In the latest issue of his Cryptocademy newsletter, Bennett says that as long as Bitcoin (BTC) can hold the $40,000 support level, then reaching $50,000 is possible for the leading crypto.
“Bitcoin looks healthy after bouncing from $42,000 support this week. That’s a support area that stretches toward $40,000 that we’ve discussed for weeks.
Buyers need to take out $46,000 on a daily closing basis to confirm the bullish breakout and open up the $50,000 region. Just keep in mind that the yearly open is $46,200, so that’s going to play a critical role.
I continue to like Bitcoin higher as long as it’s above the $40,000 region.”
At time of writing, Bitcoin is down 3.35% to $41,956. It’s the first time BTC has dipped below $42,000 since Sunday.
Moving on to leading smart contract platform Ethereum (ETH), Bennett provides a chart highlighting ETH’s downward trend that dates back to November of last year.
“Ethereum is attempting to break out from a descending channel that extends from the November highs…
You can see how the market carved out a false break/deviation in January. So it’s no surprise to see ETH/USDT trending in the opposite direction.”
The crypto guru says there are two important resistance lines ETH must surpass to convince him that it’s capable of recapturing $3,600, a price last seen on January 5th during a dramatic leg down to the $3,400 range.
“A convincing close above $3,120 would likely keep ETH trending higher. However, I still want to see buyers take out $3,280 to carve that first higher high to expose $3,600.”
Ethereum is currently down 2% on the day to $2,997. ETH is down by 19.7% from a yearly opening price of $3,730.
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