On Monday, January 17, Bitcoin started the third week of 2022 with losses. BTC is trading 0.7% low at $42,879, ETH is trading 1.4% lower at $3283. Most altcoins on the chart too are trading in red today.
BTC Price Action
BTC Price has risen past the $44,000 resistance level. Before sellers came in, BTC had even risen above $44,200.
A new low was set near $44,400, and the price began to fall again. The $43,500 and $43,200 marks were clearly breached. The price even fell below the $42,500 support level, as well as the 100 hourly simple moving average.
At the time of writing, BTC is trading at $42,881 down 0.8%. The support on the downside is at $41,800. However, in case of an uptrend, the resistance is at $43,200 and $43,500 subsequently.
Bitcoin Price to Breakout Soon?
According to widely followed crypto researcher Justin Bennett, a significant surge for Bitcoin (BTC) is extremely expected in the next few days.
Bennett examines patterns in BTC’s history of price activity in a new strategy session, claiming that the largest crypto asset by market cap is due for a 20-30 percent surge.
Bennett claims that since early 2021, anytime Bitcoin has seen a significant price drop, it has typically fallen below that level in the days or weeks after the dip before rising. BTC, he believes, is nearing the point in the process where it will skyrocket.
The analyst says, since early 2021, we’ve seen a pattern where we get a low below the liquidation wick, followed by a rally upward. This has happened every single time. The average change for Bitcoin is around 63 percent, so if you add all of these moves together, it’s roughly 63 percent. The lowest one occurred here [in April], and it was around 27%.
When looking at prior price activity to get a sense of what’s likely here, we start at the low of $40,000. If we got something like that smallest move of approximately 27%, it would place the market right around $50,000, which would make a lot of sense because we know this area between $50,000 and $53,000 is going to be big.
Given that sellers are likely to defend that range as resistance, Bennett believes a price of $50,000 to $53,000 makes the most sense as a goal for a relief rally.
He does believe, though, that Bitcoin must first break through the $45,600 barrier to begin its climb.
“More consolidation from BTC. I’m still anticipating a move to $45,600 and potentially $50,000-$53,000 in the next few weeks.”
