A popular crypto strategist and trader is predicting a sizeable rally for Bitcoin (BTC) as bulls try to maintain support around the $40,000 area.
Justin Bennett tells his 96,800 Twitter followers that Bitcoin’s bounce from the 90-day low of $39,796 indicates that BTC is due for a relief rally.
“BTC has a habit of dropping 4%-8% below liquidation wicks [December 4th candle] before bouncing. It’s occurred five times since the start of 2021, excluding the December fourth candle.
Today’s low is 5.7% below the $42,000 liquidation low. Bounce time.”
On December fourth, Bitcoin dropped as much as 22% of its value in a single day from around $53,000 to $42,000 before buyers stepped in and pushed BTC to $49,152, leaving a large wick below the daily candle’s body.
With Bitcoin filling the December fourth liquidation candle, Bennett says in a new YouTube video that he sees BTC rallying above the $50,000 level.
“I do like the idea of a bounce between $38,000 and $40,000. Let’s talk about targets. If we do get that bounce, either from $40,000 or so or down toward $35,000.
Now if you look at every single time Bitcoin has done this since early 2021, the average bounce following a liquidation event and then that move below the low, every single time it’s done this, the average bounce is around 63%. Now the lowest is 25%. The highest is 100%.
So with the average being 63%, we could very well see Bitcoin move back toward not only $45,000 but up toward $53,000.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Jorm S
The post Crypto Strategist Justin Bennett Says Bitcoin (BTC) Bounce Imminent – Here Are His Targets appeared first on The Daily Hodl.