The cryptocurrency market seems bullish today as the largest cryptocurrency by market cap has gained by more than two percent and is inching closer to the $43k mark. Ethereum on the other hand had gained more than five percent and is trading at $3240. Most of the altcoins too were trading in green.
Will Bitcoin Return to the $53k Mark Soon?
As bulls strive to retain support around the $40,000 level, a well-known crypto analyst and trader predicts a significant rally for Bitcoin (BTC).
Bitcoin’s comeback from the 90-day low of $39,796 implies that BTC is set for a relief rally, according to Justin Bennett.
He says that before recovering, BTC tends to dip 4 percent -8 percent below liquidation wicks [December 4th candle]. With the exception of the December fourth candle, it’s happened five times since the beginning of 2021. Today’s low is 5.7 percent lower than the liquidation low of $42,000. “It’s time to bounce.”
Bitcoin plunged as much as 22% in value in a single day on December 4th, from roughly $53,000 to $42,000, until buyers stepped in and pushed BTC to $49,152, leaving a big wick beneath the daily candle’s body.
Bennett says that Bitcoin will rally above $50,000 after filling the December fourth liquidation candle.
“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.
In conclusion, he says that every time Bitcoin has done this since early 2021, the average bounce following a liquidation event and then that move below the bottom has been roughly 63 percent. The lowest percentage is now 25%. The highest percentage is 100 percent. So, with a 63 percent average, we may very easily see Bitcoin return to not only $45,000 but even $53,000.