Famous crypto strategist, Bitcoin He emphasizes that although it is trading above the $50,000 level, it is in a difficult spot.
Analyst Justin Bennett noted that BTC has reached the diagonal resistance of an ascending channel.
An ascending channel is typically considered a bullish pattern as it indicates that an asset is going through an uptrend and printing higher highs and higher lows.
With Bitcoin reaching the resistance level of this formation, Bennett thinks BTC could make a correction to $46,000.
The analyst stated:
“BTC may remain vulnerable as long as it remains below this $52,000 – $53,800 area. If I’m wrong, Bitcoin should clear this zone and move above it. But until then I will remain bearish. There is no room for sentimentality.”
NEWS CONTINUES BELOW
Bennett has yet to convincingly reclaim the diagonal support of the ascending channel on Bitcoin’s monthly chart, suggesting a correction is imminent.
“From the broader perspective, nothing has changed. The struggle continues regarding these higher time frame swings between $49,000 and $52,000.
However, it is important to understand that these factors change every hour. Therefore, it is necessary to constantly stay up to date on this issue.”
At the time of writing this news, BTC is trading at $51,784. Additionally, it is trending just below the cross support of Bennett’s model.
decentralized exchange injectiveDrawing attention to the local presence of (INJ), Bennett states that the altcoin seems ripe for a serious correction towards the diagonal support around $20.
The analyst notes that a pullback will be confirmed if INJ falls below $31.
Bennett continues: “I saw only one of dozens of bearish comments on INJ all week. I see no reason for bullishness here. If below $31 is confirmed, the potential for a retracement increases. However, moves above $37 may invalidate the bearish scenario.”
At the time of writing, INJ is trading at $36.97, slightly below the trader’s invalidation price level.
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