dailyhodl.com
18 February 2024 21:27, UTC
A widely followed crypto strategist thinks that Bitcoin ($BTC) is in a tough spot even as it trades above $50,000.
Analyst Justin Bennett tells his 112,000 followers on the social media platform X that $BTC has hit the diagonal resistance of an ascending channel.
An ascending channel is typically viewed as a bullish pattern as it suggests that an asset is going through an uptrend and printing higher highs and higher lows.
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With Bitcoin hitting the pattern’s resistance level, Bennett thinks that it’s possible for $BTC to correct to as low as $46,000.
“$BTC remains vulnerable while below this $52,000 – $53,800 area.
If I’m wrong, then Bitcoin should clear this area and base above it.
Until then, I’ll remain bearish.
No emotion needed.”
Zooming out, Bennett thinks that Bitcoin has not yet convincingly reclaimed the diagonal support of an ascending channel on $BTC’s monthly chart, suggesting that a correction is in sight.
“The fact is that nothing has changed in the broader picture. $49,000… $52,000… it’s all the same when dealing with high time frame swings.
But feel free to keep thinking these things change every hour.”
At time of writing, Bitcoin is trading for $51,784, hovering just below the diagonal support of Bennett’s pattern.
Looking at the native asset of the decentralized exchange Injective ($INJ), Bennett says the altcoin looks ripe for a severe corrective move down to its diagonal support at around $20.
The analyst notes that the pullback will be confirmed if $INJ dips below $31.
“I’ve only seen one bearish take on $INJ all week out of dozens.
I see zero reasons to be bullish here.
Confirmation below $31.
Invalidation above $37.
Zero emotion needed.”
At time of writing, $INJ is trading for $36.97, just slightly below the trader’s invalidation price level.
Generated Image: Midjourney
