Widely-followed crypto analyst Justin Bennett says Bitcoin (BTC) may be ready to rise again, while noting areas of confluence for three popular altcoins and diagnosing the crypto markets as a whole.
In the latest edition of his Cryptocademy newsletter, Bennett says he doesn’t have “high hopes” for BTC making a parabolic move this week.
“I know many are expecting a parabolic move from Bitcoin any day now, but that’s why I’m not putting high hopes on it. The market has a way of humbling the masses.
BTC would need to climb back above $63,300 on a daily closing basis to open up $66,000. Above that is the $70,000 area.
What might be the more likely path in the short term is a move to test the $55,000 region. Whether we get a retest of $63,300 first is anyone’s guess.
I’m staying open-minded here as everyone should during consolidation.”
However, Bennett says the largest crypto asset by market cap may finally be poised for a run back up in a recent tweet.
“BTC could be setting up for a run at $63,000 in the next day or two.
Best to look for short-term [opportunities] or nothing at all while consolidating like this.”
Bitcoin is trading at $57,135 at time of writing, down 5% over the last 24 hours.
The trader says he’s prepared for leading smart contract platform Ethereum (ETH) to retest the $4,000 support band before potentially finding support at $3,800.
“ETH is trying to hang onto the $4,200 area that I’ve mentioned a few times recently. A bounce from this area would take Ethereum back to $4,400.
Alternatively, a move below $4,200 would expose the confluence of support between $3,800 and $4,000.
I think the scenario of a $4,000 retest is still very real. Of course, that doesn’t mean it will happen, but I’m prepared for it just in case.”
“ETH is as straightforward as it gets.
Massive confluence of support at $3,800 – $4,000. That’s a must hold area, in my opinion.”
Moving on to smaller-cap altcoins, Bennett foresees blockchain oracle Chainlink (LINK) potentially sinking lower in price than it previously has.
“At the moment, LINK is catching some support at $28, as expected.
A close below that would open up $24 and potentially $21.”
At time of writing, LINK is trading at $26.80. Bennett also looks at enterprise solution blockchain VeChain (VET), warning traders that “everyone should prepare for a retest of the $0.12 area just in case” after the mid-cap altcoin reached $0.175 just three days ago. However, Bennett isn’t losing sleep on the dip.
“VET huge confluence of support around the 0.12 area.
No worries here. Still as bullish as I’ve ever been.”
VeChain is exchanging hands at $0.129 at time of writing. Finally, the Cryptocademy founder offers his prognosis on the crypto markets as a whole.
“TOTAL crypto market cap continues to look good here. The $2.4 trillion area is support.
I don’t know where the next few weeks lead us, but don’t be surprised if this cycle extends well into 2022.
That’s the least expected outcome right now.”
Currently, the total crypto market cap is hovering around $2.5 trillion.
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