Widely followed crypto analyst Justin Bennett says that a sizeable rally for Bitcoin (BTC) is a very likely scenario in the coming days.
In a new strategy session, Bennett takes a look at patterns in BTC’s historic price action that he says show a 20-30% rally is coming up for the largest crypto asset by market cap.
Bennett says that since early 2021, whenever Bitcoin sees a massive price dip, it usually falls below that point again in the following days or weeks before rallying. According to him, BTC may be in the phase of this process where it’s ready to surge.
“Ever since early 2021, you can see where we get the low below the liquidation wick, we then get a move higher. Every single time this has occurred. The average move for Bitcoin is about 63%, so if you average out all these moves it’s about 63%. The smallest one was back here [in April], and this was about 27%…
If we use past price action to get an idea of what’s likely here, and we look from the low down here at $40,000… If we did get something like that smallest move around 27%, it would put the market up here right around $50,000, and that would actually make a lot of sense because we know that this area between $50,000 and $53,000 is likely to be significant.”
Bennett says that a price of somewhere between $50,000 and $53,000 makes the most sense as a target for a relief rally given that sellers are likely to defend that range as resistance.
However, he says that Bitcoin will have to kick off its rally by breaking through the $45,600 mark first.
“More consolidation from BTC.
I’m still anticipating a move to $45,600 and potentially $50,000-$53,000 in the next few weeks.”
Bitcoin is changing hands at $43,120 at time of writing, a 6% increase from its seven-day low of $40,683.
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