One widely followed cryptocurrency strategist believes that Bitcoin (BTC) is in a tough spot even as it trades at over $50,000.
Analyst Justin Bennett told his 112,000 followers on social media platform X that Bitcoin has reached the diagonal resistance of the ascending channel.
An ascending channel is usually seen as a bullish pattern because it indicates that the asset is going through an uptrend and making higher highs and higher lows.
With Bitcoin reaching the pattern's resistance level, Bennett believes it is possible for Bitcoin to correct to as low as $46,000.
“BTC remains vulnerable while below the $52,000-$53,800 area.
If I'm wrong, Bitcoin should clear this area and the base above it.
Until then, I will remain bearish.
No need for emotion.”
Given this, Bennett believes that Bitcoin has yet to convincingly recover the diagonal support of the ascending channel on Bitcoin's monthly chart, suggesting that a correction is on the horizon.
“The reality is that nothing has changed in the broader picture. $49,000…$52,000…it's the same when dealing with high time frame volatility.
But feel free to keep thinking that these things change by the hour.
At the time of writing, Bitcoin is trading for $51,784, hovering just below the diagonal support of the Bennett model.
Looking at the native assets of decentralized exchange Injective (INJ), Bennett says the altcoin looks ready for a sharp corrective move all the way to its diagonal support at around $20.
The analyst notes that the pullback will be confirmed if INJ price falls below $31.
“I only saw one downtrend for INJ all week out of dozens.
I don't see any reasons for optimism here.
Confirmation is less than $31.
Invalidation above $37.
No need for emotion.
At the time of writing, INJ is trading at $36.97, just below the trader's invalidation price level.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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