Here’s what’s next for Bitcoin (BTC) after sudden drop, according to popular crypto analyst
A popular cryptoanalyst unveils his forecast for Bitcoin (BTC) after the crypto king plunged over 6% on March 3rd.
Analyst Justin Bennett says in a recent newsletter that Bitcoin bulls should keep a close eye on the $23,130 price for BTC.
According to the trader, BTC could witness another sell-off event if bulls fail to recapture the key price area.
“The key for bulls is a recovery above the $23,130 monthly open. The longer Bitcoin trades below this area, the stronger it becomes as resistance.
If Bitcoin bulls fail to reclaim $23,130, we can move towards the $20,800 liquidity pool.
If they can reclaim $23,130, $23,800 is the next hurdle for buyers.
But for now, Bitcoin is ranged between the January trend line at $21,900 and the monthly open at $23,130.”
At the time of writing, Bitcoin is worth $22,491, well below the analyst’s crucial price level.
Looking at Ethereum (ETH), Bennett believes that the leading smart contract platform is following in the footsteps of BTC. According to the analyst, ETH can prepare for the next leg down as long as it trades below $1,600.
“As of now, the $1,600 area is new resistance based on recent closes and lows this week.
The monthly opening is just above that at $1,605, so keep that in mind.
If ETH bulls can’t regain $1,605 in the next few days, we’ll likely see a retest of $1,500 support, and below that, $1,420 is the confluence of support.”
At the time of writing, Ethereum is trading at $1,575.
As for blockchain scaling solution Polygon (MATIC), Bennett says the altcoin looks bearish and appears to be at risk of a move below $1.
“One thing that is a bit worrying is how MATIC (so far) has not been able to climb back above $1,179 today.
It has been a key point since late January, so a daily close below it could be significant.
If MATIC closes below $1.1790, the next stop is $1.056 unless there is a fakeout, of course.
But overall, the MATIC is looking increasingly weak, so I wouldn’t be surprised to see $1.056 tested in the coming days, if not the $1 mark or lower.”
At the time of writing, MATIC is worth $1.15.
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