Cryptocurrency analyst Justin Bennett, instead of predicting how BTC will behave in the short term, indicated what needs to happen for the crypto asset to gain bullish momentum and return to the $50,000 level again.
Key Level for BTC to Rise Again
In a new strategy session, Bennett said that BTC is currently trading in an ascending channel and looks set to break above $40,000 in early February.
However, for that, BTC must sustain its value above $37K by converting resistance into support.
“If BTC can break through these highs, around $37,500, if we get that breakout, I think we’ll see $40,000, potentially up to $42,000 here in the next few days,” he pointed out.
While indicating some optimism about the BTC price in the short term, the cryptocurrency strategist explains why bulls are likely to face strong sell-side pressure around the $40,000 price area.
“As long as BTC stays within this ascending channel, I hope, as I said, it will rally here to $40,000 to $42,000 to really test this area because it will be a huge area for BTC. You can even see it as a horizontal area, in the last few months, and in fact, in the last 12 months, this area has been incredibly significant. And the market is now trading below it on a daily and weekly closing basis.”
As Bennett pointed out, BTC needs to break above the $40,000 to $42,000 level to then retest $45,000 to $46,000.
Then, it may again exceed $50,000. Otherwise a new low could hit in the coming weeks.
So, if BTC bulls manage to overcome the resistance at $42,000, a breakout could take BTC to $50,000.
“We need to see BTC really break above $42,000 and close above $42,000 to expose $45,000 to $46,000 and potentially $50,000. Until that moment comes, $40,000 to $42,000 will be very strong resistance.”