Bennett notes that since the beginning of 2021, anytime Bitcoin has a significant price drop, it has often fallen below that level once more in the days or even weeks after the slump before recovering. As per him, BTC may be at a stage of this kind of movement where it is poised to explode.
“Since the beginning of 2021, you would have seen that whenever we reach a bottom underneath the liquidation wave, we immediately begin to climb upward. This has happened each and every time. The average advance for Bitcoin is around 63%, when all of these changes are added together. The lowest was around here [in April 2021], and it was around 27%. If we study at prior price activity to get a sense of what’s probable ahead, and we start at the level of $40,000.
“If we do see a rise of approximately 27%, it would bring the market up to roughly $50,000, which sounds reasonable given the fact that the range between $50,000 and $53,000 has often been a difficult barrier to cross.”
Bennett believes that a price range of $50,000 to $53,000 makes perfect sense as a goal for a recovery rally, given the likelihood that sellers would defend that area by offering resistance. He does, nevertheless, believe that Bitcoin’s resurgence would have to begin with a break over the $45,600 level.
“BTC continues to consolidate. I continue to anticipate a climb to $45,600, and maybe $50,000-$53,000, in the coming weeks.”
While writing this story, bitcoin is trading at $43,090, up 6% from its seven-day nadir of $40,683.