A popular strategist thinks that an upside break for Bitcoin (BTC) is always possible as long as it has a significant support level. Bitcoin (BTC) may be quietly forming a bullish reversal pattern in the FOMO (Market Fear) climate, according to popular crypto analyst Justin Bennett. Details are on Kriptokoin.com.
Bitcoin winking at these levels
The flagship cryptocurrency has been below $40,000 for several days. Analyst Justin Bennett provides a detailed analysis identifying key support and resistance levels. Despite the negative outlook, the analyst is feeling positive, saying, “Bitcoin is in a critical support area… between $35,000 and $37,000. Bitcoin is still holding above support. Yes, I realize the charts don’t look great,” she says. According to the analyst, although there are problems, he continues to be on the rise. The charter says it is “bullish” unless the $35,000-37,000 support level is broken. For now, he thinks the recent price action suggests that Bitcoin may be ready to pull an upside reversal pattern and send BTC higher. Here’s what the analyst talks about:
Patterns like this tend to trigger an uptrend, usually after a sell-off. This is a typically speaking bullish pattern. If we see Bitcoin abandoning this zone, everything is off the table and we would likely be back at $30,000.
Bennett says $39,000 and above are things to look for to confirm the optimism of Bitcoin bulls. He tells the analyst:
Confirmation of this pattern will be near [$39,000 to $39,600] above the area here. That will land somewhere around $39,000 followed by $39,600. Remember, this will be a key level where we should see Bitcoin close the day above $39,600.
Bennett highlights similar declines in September and October of 2021 and last January before the rallies. He concludes his analysis with the words:
To confirm this wedge pattern, I would like to see Bitcoin break above this hourly resistance area [$39,000] and then rise above $39,600 on the daily timeframe. So that means closing the day above this area [$40,100] and then I think we hit this breakout.
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