A widely respected cryptocurrency strategist believes Bitcoin (BTC) is in trouble despite it trading above $50,000.
Analyst Justin Bennett told his 112,000 followers on social media platform
A rising channel is generally considered a bullish pattern as it suggests that an asset is experiencing an upward trend and printing higher highs and higher lows.
With Bitcoin reaching the pattern’s resistance level, Bennett believes BTC could correct towards a low of $46,000.
“BTC remains vulnerable while below $52,000-$53,800.
If I’m wrong, Bitcoin needs to clean up this area and build on it.
Until then I will remain bearish.
“There is no need for emotions.”
Zooming out, Bennett believes Bitcoin has yet to convincingly regain the diagonal support of the rising channel on the BTC monthly chart, suggesting a correction is imminent.
“The truth is that nothing has changed in the broader picture. $49,000… $52,000… It’s all the same when dealing with high time zone variations.
But keep thinking that these things change every hour.”
As of this writing, Bitcoin is trading at $51,784 and remains just below the diagonal support line of the Bennett pattern.
Looking at the underlying assets of decentralized exchange INJ (Injective), Bennett said the altcoin looks mature enough to see a serious corrective move all the way to the diagonal support around $20.
The analyst pointed out that the downtrend would be confirmed if INJ falls below $31.
“I saw only one bearish view on INJ out of dozens all week.
I see no reason to be optimistic here.
It is confirmed to be under $31.
Void over $37.
No emotions needed.”
As of this writing, INJ is trading at $36.97, slightly below the trader’s invalidation price level.
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