A popular crypto strategist and trader is predicting a sizeable rally for Bitcoin (BTC) as bulls try to maintain support around the $40,000 area.
Justin Bennett tells his 96,800 Twitter followers that Bitcoin’s bounce from the 90-day low of $39,796 indicates that BTC is due for a relief rally.
“BTC has a habit of dropping 4%-8% below liquidation wicks [December 4th candle] before bouncing. It’s occurred five times since the start of 2021, excluding the December fourth candle.
Today’s low is 5.7% below the $42,000 liquidation low. Bounce time.”
On December fourth, Bitcoin dropped as much as 22% of its value in a single day from around $53,000 to $42,000 before buyers stepped in and pushed BTC to $49,152, leaving a large wick below the daily candle’s body.
With Bitcoin filling the December fourth liquidation candle, Bennett says in a new YouTube video that he sees BTC rallying above the $50,000 level.
“I do like the idea of a bounce between $38,000 and $40,000. Let’s talk about targets. If we do get that bounce, either from $40,000 or so or down toward $35,000.
Now if you look at every single time Bitcoin has done this since early 2021, the average bounce following a liquidation event and then that move below the low, every single time it’s done this, the average bounce is around 63%. Now the lowest is 25%. The highest is 100%.
So with the average being 63%, we could very well see Bitcoin move back toward not only $45,000 but up toward $53,000.”
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