Justin Bennett, a widely followed cryptocurrency analyst, says a massive Bitcoin (BTC) rally is a highly likely scenario in the coming days.
In a new strategy session, Bennett examines the historical patterns of price behavior for BTC and shows that it is expected to rise by 20-30% on the largest crypto asset by market capitalization.
According to Bennett, the significant decline in bitcoin prices since early 2021 usually drops below this point again in the days or weeks leading up to the rally. According to him, at some point in this process, BTC may be ready for a rally.
“Since the beginning of 2021, you can see where the bottoms are under the clearing wick. Then it will be high. Every time this happens. The average movement of Bitcoin is about 63%, so all of these movements. On average, this is about 63 % The youngest one is back here [in April], that was about 27%…
Using past price action to see what’s going to happen here, and looking at the $40K lows here, if you get something like a minimal movement of about 27%, the market is about to go higher here at $50,000. This makes a lot of sense really, because we know that this region between $50,000 and $53,000 is potentially significant. “
Bennett says that the price somewhere between $50,000 and $53,000 makes the most reasonable target for a rescue rally, given that sellers are likely to defend the range as resistance.
But he says bitcoin should start its rally by breaking the $45,600 mark first.
More integration of BTC.
We expect to move from $45,600, and in some cases $50K to $53K, in the coming weeks. “
Bitcoin is trading at $43,120 at the time of writing, up 6% from a seven-day low of $40,683.
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