A widely followed crypto strategist believes Bitcoin (BTC) is in a tough spot despite trading above $50,000.
Analyst Justin Bennett told his 112,000 followers on social media platform X that Bitcoin has hit resistance on the diagonal of an ascending channel.
An ascending channel is typically considered a bullish pattern because it suggests that an asset is undergoing an uptrend, recording higher highs and higher lows.
Bennett believes BTC could correct to $46,000 now that it has hit the pattern's resistance level.
“BTC remains vulnerable while below this $52,000 to $53,800 area.
If I'm wrong, Bitcoin needs to clear this area and establish itself above it.
Until then, I will remain bearish.
No emotions needed. ”
Zooming out, Bennett believes that Bitcoin has yet to convincingly regain diagonal support in the ascending channel on BTC's monthly chart, suggesting a correction is on the horizon. ing.
“Really, nothing has changed in the grand scheme of things. $49,000…$52,000…all the same when dealing with large swings in time frames.
But keep in mind that these things change from time to time. ”
At the time of this writing, Bitcoin is trading at $51,784, hovering just below the diagonal support of the Bennett pattern.
Bennett said looking at the native asset of decentralized exchange Injective (INJ), the altcoin appears ripe for a tough correction to diagonal support around $20.
The analyst points out that a rebound will be confirmed if INJ falls below $31.
“All this week I have seen only one bearish view on INJ out of dozens.
I don't see any reason to be bullish here.
Verify less than $31.
Void after $37.
No emotions needed. ”
At the time of writing, INJ is trading at $36.97, just below trader's void price level.
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