The king of cryptocurrencies, Bitcoin price fell more than 6% on March 3rd, and a well-known analyst is releasing his prediction for the coin.
Source: Justin Bennett
In a recent newsletter, analyst Justin Bennett stated that Bitcoin bulls should closely monitor the $23,130 price for BTC. If bulls cannot take back the crucial price region, the trader believes that Bitcoin may experience another sell-off event.
“The key for bulls is a reclaim above the $23,130 monthly open. The longer Bitcoin trades below that area, the stronger it becomes as resistance. If Bitcoin bulls fail to reclaim $23,130, we could move toward the $20,800 liquidity pool. If they can reclaim $23,130, then $23,800 is the next hurdle for buyers. But, for now, Bitcoin is range bound between the January trend line at $21,900 and the monthly open at $23,130″, he stated.
BTC/USD 4-hour chart | Source: TradingView
When writing, the Bitcoin price is $22,446, much below the analyst’s threshold.
Bennett thinks Ethereum (ETH), the most popular smart contract platform, imitates Bitcoin (BTC). As long as ETH is trading below $1,600, the analyst believes it may be preparing for the next move down.
“As of now, the $1,600 area is new resistance based on recent closing prices and lows this week. The monthly open is just above that at $1,605, so keep that in mind. If ETH bulls can’t reclaim $1,605 in the next few days, we’ll likely see a retest of $1,500 support, and below that is the $1,420 confluence of support”, he added.
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