While other risk assets are still under pressure as a result of this week’s CPI result, Bitcoin and Ethereum are still trading within well defined bands. On Saturday and Sunday, the cryptocurrency markets experienced a resurgence of bearishness as Bitcoin fell once again.
After a pre-market selloff on Thursday morning, the largest coin in the world began the weekend low after bitcoin plunged buyers into the support area above $18000 and surged to $20,000. Ethereum also declined today and fell below $1,300.
Bitcoin to hit $27,000?
A popular cryptocurrency strategist and trader expects rallies for Bitcoin and Ethereum that will astonish skeptics. According to analyst Justin Bennett, diagonal resistance, a trendline that has kept the market bearish since November 2021, has been successfully broken above.
“BTC reversed today right from the linear trend line from the all-time high.”
Bennett said that now that the diagonal barrier has been removed, bitcoin is poised to rally around 40% from its target price of around $27,000.
The analyst is examining the inverted price chart for BTC, which traders occasionally use to see if their bias still holds under various circumstances. According to Bennett’s chart, Bitcoin will reach its target by December 2022.
However, in the near term, the analyst is of the view that bitcoin could drop below $19,000 before starting its rally. He estimates the liquidity gap at $18,500. According to him, BTC is approaching the close of the weekend while the market is still trading sideways with lower wicks to leave a divergence above $19,540.
Bennett noted that Ethereum, the industry-leading platform for smart contracts, now looks positive after successfully achieving a critical support level. “How fast does ETH recover. Bear in disbelief. Send it.”
