Bitcoin’s Near Future: Brace for a Correction or Expect a Breakout?
A popular crypto trader, Justin Bennett, has cautioned Bitcoin investors of a potential long liquidation cascade in the coming days.
He suggests that market makers could drive the price down to tap into the deep liquidity area, where billions of dollars worth of long positions are waiting to be liquidated.
Bennett’s chart analysis indicates that BTC could mirror its late 2014 and early 2019 price action when Bitcoin broke down from a descending triangle pattern before eventually taking out a key diagonal resistance.
On the other hand, Rekt is optimistic about Bitcoin’s performance in the near future. He predicts that Bitcoin could retest its resistance at around $23,300 before continuing its current uptrend.
Rekt believes that BTC is performing a successful retest of the confluent resistance area on the daily chart and that there could still be another dip to that area after a weekly close. However, this would constitute a healthy technical retest setup, but this time on the weekly timeframe.
Interestingly, while the two analysts have different opinions about Bitcoin’s future price movement, they both appear to agree that Bitcoin is currently in a critical position.
They also suggest that traders should keep a close eye on Bitcoin’s price movements and make informed decisions based on their analysis of the market.