Widely followed crypto analyst Justin Bennett says that Bitcoin (BTC), Ethereum (ETH) and VeChain (VET) could slide lower before the next rally.
In the latest issue of the Crypocademy newsletter, Bennett stated that BTC could drop to $35,000 before rising again.
“Bitcoin has bounced off the $37,600 region today, which served as support in February and March. However, BTC is still below $39,500, which has served as support since April 11 until last Tuesday. Therefore, I think buyers should be cautious until $39,500 is reclaimed on a daily close basis.
I continue to think that Bitcoin has a good chance to test the $35,000 region before the low hits. Of course, this will depend on whether the $37,600 and $39,500 levels are maintained in the coming days.”
Bennett, on the other hand, predicts that the leading smart contract platform Ethereum will soon test $4,000, but decline first.
“ETH continues to decline in a descending channel since the April peak… For the purpose of this structure (descending channel), it puts the upcoming low at approximately $2,500. Time will tell whether this will happen or not.
If it does, the $2,500 level will align with the March lows and the bottom of an ascending channel from January. I think the probability of ETH retesting the $2,500 zone before the next uptrend happens is relatively high.
If Ethereum bounces there and recovers from the descending channel on the chart below, I will wait for a retest of the failed weekly level at $4,000 in the coming months. This may sound like a high target, but markets like to retest failed levels before making their next move.”
Bennett also evaluated enterprise solutions platform VeChain.
“VET lost the $0.055 level yesterday. This means that $0.055 is the new resistance. The next key support for VET is the $0.044 region, which has supported VET since January. If it is tested, I expect a good bounce from this zone, maybe BTC and ETH if it gives us a relief rally this summer it will return to $0.055 and maybe even higher. Alternatively, a daily close below $0.044 will open the next key support at $0.035.”
Bennett also examined the total crypto market cap (TOTAL), which shows the value of crypto markets as a whole. Even looking at TOTAL, the trader sees signs that BTC and ETH are heading towards $35,000 and $2,500 respectively.
“Total crypto market cap held at support… The level in question was at $1.72 trillion, just below yesterday’s close, which shows it’s still solid as major support. […]
I still think the market will see another drop before it hits a real bottom. For TOTAL, this could mean a move to $1.55 trillion in support. This will likely coincide with $35,000 BTC and $2,500 ETH. Alternatively, a daily close above $1.8T may cast doubt on the above scenario.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.