A well-liked crypto strategist and dealer is predicting a sizeable rally for Bitcoin (BTC) as bulls attempt to keep help across the $40,000 space.
Justin Bennett tells his 96,800 Twitter followers that Bitcoin’s bounce from the 90-day low of $39,796 signifies that BTC is due for a aid rally.
“BTC has a behavior of dropping 4%-8% under liquidation wicks [December 4th candle] earlier than bouncing. It’s occurred 5 instances for the reason that begin of 2021, excluding the December fourth candle.
Today’s low is 5.7% under the $42,000 liquidation low. Bounce time.”
On December fourth, Bitcoin dropped as a lot as 22% of its worth in a single day from round $53,000 to $42,000 earlier than consumers stepped in and pushed BTC to $49,152, leaving a big wick under the day by day candle’s physique.
With Bitcoin filling the December fourth liquidation candle, Bennett says in a brand new YouTube video that he sees BTC rallying above the $50,000 stage.
“I do like the concept of a bounce between $38,000 and $40,000. Let’s speak about targets. If we do get that bounce, both from $40,000 or so or down towards $35,000.
Now if you happen to take a look at each single time Bitcoin has executed this since early 2021, the common bounce following a liquidation occasion after which that transfer under the low, each single time it’s executed this, the common bounce is round 63%. Now the bottom is 25%. The highest is 100%.
So with the common being 63%, we may very effectively see Bitcoin transfer again towards not solely $45,000 however up towards $53,000.”
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