One of the well-known analysts in the crypto world Justin BennettDiscussed a potential scenario for how Bitcoin (BTC) needs to gather momentum in order to continue its rise.
Speaking in a new video he posted on his YouTube channel, Bennett stated that Bitcoin is currently trading in an ‘uptrend’ in the lower timeframe and is poised to break above $40,000 before the end of January.
“Bitcoin (BTC)If it manages to break above the $37,500 levels, I think it could hit $40,000 in the next few days (before the end of January), potentially as high as $42,000.”
Bitcoin is currently trading at $37,760.
While Bitcoin appears to be in a bull market on the lower timeframes, the crypto strategist also explained why the bulls will face heavy selling pressure around the $40,000 price area.
“bitcoin price As long as it stays inside this ascending channel, I expect it to move to the $40,000-$42,000 level as I said before because these levels will be quite a large area for BTC. You can even see it as a horizontal field, which has been incredibly important in the last few months and indeed the last 12 months. And the market is currently trading below the close on a daily and weekly basis.
Therefore, $40,000 to $42,000 will be a support whether we see Bitcoin rally to $45,000 to $46,000 or see a lower rotation in the coming weeks.”
Bennett thinks that if Bitcoin bulls manage to overcome the $42,000 resistance, a breakout could push BTC up to $50,000.
“We will have to see Bitcoin actually rise above $42,000, above $42,000, to reveal $45,000 to $46,000 and potentially $50,000. Until then, $40,000 to $42,000 will be a very strong resistance.”
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.