Top analyst updates Bitcoin and ETH outlook
Renowned analyst Justin Bennett updates his outlook on the two largest cryptocurrencies by market cap.
Start with Bitcoin, Bennett to speak that the top cryptocurrency could surge by as much as 40% if it breaks the $42,000 resistance level.
“The $35,000-$36,000 area is support and $40,000-$42,000 is resistance. As I said recently, market needs to break above $42k to approach $45k-46k followed by $50k-53k resistance area.”
Source: Justin Bennett
With bitcoin now threatening to break the $42,000 resistance, Bennett believes a strong rally is imminent.
“I continue to like people who have a vision of a significant rebound here in the coming weeks. It took longer than I thought, but sometimes it does.”
Technical Analysis Bitcoin
The recent unexpected price action in the market has led to some positive sentiment shifts. However, many analysts remain skeptical due to macro-level uncertainty.
Most technical analysts believe that a price consolidation below the weekly Ichimoku cloud is the end of Bitcoin’s bull cycle or a slight near-term bounce back above these levels. Two weeks ago, a weekly candle closed below the cloud. After that, however, an uptrend started that shortened the time the price stayed below the cloud.
Therefore, the positive momentum remains uncertain. Price is currently struggling with Kijensen, which often acts as resistance. However, a break of this dynamic resistance (~$43,000) could send a positive signal to traders/technical analysts in the market.
In the short term
On the 4-hour timeframe, the intersection of dynamic resistance (yellow) and the POC line (red) looks quite interesting. Recent candlesticks show that the uptrend unexpectedly started to weaken on February 4th. The bears tend to hold back on the upside moves and the bulls are supporting the areas that have rebounded. As a rule of thumb, breaking this zone and forming a higher high usually confirms a downtrend reversal.
It took Bitcoin 14 days to recover $41,300 depending on the market structure. The supply ratio review was profitable during the correction to $32,900, only 6% of the supply was delivered.
The slight change in this ratio means that the hold sentiment has prevailed lately. Compared to many similar events in the past, it can be confirmed that the illiquid supply in the market is less likely to be used on exchanges due to short-term volatility. In other words, long-term holders’ views have changed significantly during this cycle.
Deliver profitable from Bitcoin (SMA7) | Source: CryptoQuant
Outlook for ETH
According to Bennett, the largest altcoin is trading sideways as it offers two possible scenarios.
“If ETH closes below $2,500, the next $2,200 will be…
If bitcoin returns to $35k support and falls to $30k, ETH could drop and test $2k…
Conversely, if we see a close above the $2,900 area, the next would be $3,100-$3,200.”
Source: Justin Bennett
ETH is trading at $3,017 at press time.
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