Bitcoin Correction: Analyst Predicts Possible Dip to $46,000
Bitcoin (BTC) is facing a challenging situation as it trades above the $50,000 mark, according to crypto strategist Justin Bennett. Bennett, who has a significant following of 112,000 social media followers, believes that Bitcoin has reached the diagonal resistance of an ascending channel.
An ascending channel is generally seen as a bullish pattern, indicating that an asset is in an uptrend with higher highs and lower lows. However, with Bitcoin hitting the pattern’s resistance, Bennett suggests that BTC may correct to as low as $46,000.
According to Bennett, BTC remains vulnerable as long as it stays below the $52,000 – $53,800 area. He adds that if Bitcoin can clear this area and establish a base above it, his bearish sentiment will be proven wrong. Until then, he maintains a bearish outlook on Bitcoin and advises against being swayed by emotions.
Taking a broader perspective, Bennett notes that Bitcoin has not yet convincingly reclaimed the diagonal support of the ascending channel on its monthly chart. This indicates the possibility of a correction being on the horizon. He dismisses the notion that price levels such as $49,000 or $52,000 hold any significant meaning when considering high time frame swings, emphasizing that the broader picture remains unchanged.
As of now, Bitcoin is trading at $51,784, just below the diagonal support of Bennett’s pattern.
Shifting focus to the decentralized exchange Injective’s native asset (INJ), Bennett suggests that the altcoin appears primed for a severe corrective move towards its diagonal support around $20. He states that if INJ falls below $31, it will confirm the anticipated pullback. Bennett mentions that he has seen very few bearish takes on INJ and sees no reason for bullish sentiment, emphasizing the importance of confirmation below $31 and invalidation above $37.
At present, INJ is trading at $36.97, slightly below the invalidation price level mentioned by Bennett.
It remains to be seen whether Bitcoin and INJ will experience the predicted corrections. As the market fluctuates, cryptocurrency enthusiasts await the next price moves with anticipation.
Analyst comment
Neutral news. The analyst believes that Bitcoin is in a tough spot and could correct to as low as $46,000. They also suggest that Bitcoin has not convincingly reclaimed diagonal support on the monthly chart. For the altcoin Injective (INJ), the analyst believes it could experience a severe corrective move down to around $20 if it dips below $31. Market could see a correction in both Bitcoin and INJ if these levels are breached.
