Widely-followed crypto analyst Justin Bennett says Bitcoin (BTC), Ethereum (ETH), and VeChain (VET) should all expect lower lows before their next legs up.
In the latest edition of the trader’s Crypocademy newsletter, Bennett forecasts that BTC will drop to $35,000 before bouncing back up.
“Bitcoin is bouncing today from the $37,600 area, which served as support in late February and March.
However, BTC is also holding below $39,500, which served as support since April 11th before closing below the level on Tuesday.
So I think buyers have to be careful until $39,500 is reclaimed on a daily closing basis.
I continue to think there’s a decent chance Bitcoin tests the $35,000 region before the low is in.
Of course, that will depend on whether or not levels like $37,600 and $39,500 hold or not in the coming days.”
Bitcoin is trading for $36,229 at time of writing, down 6.84% in the last 24 hours.
Bennett predicts that leading smart contract platform Ethereum will soon test $4,000, but only after tumbling below current levels, first.
“ETH continues to move lower within a descending channel from the April high…
The objective of that structure puts the upcoming low at around $2,500. Time will tell if that comes to fruition or not.
If it does, $2,500 also lines up with the March lows and the bottom of an ascending channel from January.
I think the odds are relatively high that we see ETH retest that $2,500 region before the next leg higher materializes.
If Ethereum bounces there and breaks free from the descending channel in the chart below, I’ll be eyeing a retest of the failed weekly level at $4,000 in the coming months.
That may sound like a lofty target, but markets love to retest failed levels before making their next move.”
Ethereum is currently trading for $2,710.
Bennett also examines enterprise-solution platform VeChain, which he believes can rally if BTC and ETH do too.
“VET lost the $0.055 handle yesterday, a level it had previously held above on the 18th. That means $0.055 is new resistance.
The next key support for VETUSDT is the $0.044 region, which has supported VET since January.
I’d expect a decent bounce from that region if tested, perhaps back to $0.055 and maybe even higher if BTC and ETH give us a relief rally this summer.
Alternatively, a daily close below $0.044 would open up the next key support at $0.035.”
VeChain is trading for $0.047 at time of writing, down over 7% on the day.
Bennett also looks at the total crypto market capitalization (TOTAL), indicating the value of the crypto markets as a whole. Even when looking at TOTAL, the trader sees signs that BTC and ETH are heading towards $35,000 and $2,500, respectively.
“The total crypto market cap held on to the support…
That level was right at $1.72T, which was just below yesterday’s close, signaling that it was still intact as key support.
So it was no surprise to see TOTAL rally today and right into the $1.8T resistance area.
I still think the market sees one more leg down before we get a true bottom. For TOTAL, that could mean a move to $1.55T support.
That would likely coincide with a $35,000 BTC and $2,500 ETH.
Alternatively, a daily close above $1.8T would cast doubt on the above scenario.”
Currently, TOTAL sits at $1.66T.
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