Crypto continues to bleed red even today. Bitcoin has fallen below $40K by 1.3% in the last 24 hours. ETH is down 5.3% and all other tokens on the chart are following suit. However, XRP defies the market trend as it trades up 5.3%.
Justin Bennett, a crypto analyst, is examining recent chart action for the top two crypto assets and identifying levels that need to be reached to confirm bullish breakouts.
Bennett states in the latest issue of his Cryptocademy newsletter that if Bitcoin (BTC) can hold the $40,000 support level, the top cryptocurrency could hit $50,000.
The analyst says that after recovering from the $42,000 support this week, Bitcoin appears to be in good shape. That is a $40,000+ support area that we have been talking about for weeks.
To confirm the bullish breakout and open the $50,000 region, buyers need to withdraw $46,000 at the daily close. Since the annual opening is $46,200, that will be a big factor.
“As long as Bitcoin is above $40,000, I think it will continue to rise.”
At the time of writing, BTC is trading at $39,964. Immediate resistance is at $40,000 and support on the downside is at $38,000 and a drop below would take the token to $32,000.
Bennett then turns to Ethereum (ETH), the most popular smart contract platform, and shows a chart showing ETH’s declining trend since November of last year.
Ethereum is attempting to break out of a descending channel that started with the November highs and continues today.
In January, the market forged a false breakout/crossover. As a result, it is not surprising to see ETH/USDT heading the other way.
According to the cryptocurrency guru, ETH needs to break two key resistance lines to convince it that it can reclaim $3,600, a price it last saw on Jan. 5 amid a catastrophic drop to the $3,400 range.
He says a convincing close above $3,120 would likely maintain ETH’s uptrend. “However, I’d like to see buyers take $3,280 to carve out that first higher high, exposing $3,600,” he added.
At the time of writing, ETH is trading at $2749. Immediate resistance is at $3000 and support on the downside is at $2,159.
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