Crypto analyst warns that Bitcoin remains vulnerable above $50,000, saying there is no reason to be bullish on a DeFi altcoin
A widely followed crypto strategist believes Bitcoin (BTC) is in a tough spot even as it trades above $50,000.
Analyst Justin Bennett tells his 112,000 followers on social media platform X that BTC has reached the diagonal resistance of an ascending channel.
An ascending channel is typically considered a bullish pattern because it suggests that an asset is undergoing an uptrend, making higher highs and higher lows.
As Bitcoin reaches the resistance level of the pattern, Bennett believes that a correction for BTC to as high as $46,000 is possible.
“BTC remains vulnerable as long as it is below this $52,000-$53,800 range.
If I'm wrong, Bitcoin should clear this area and support above it.
Until then, I remain pessimistic.
No emotions needed.”
Source: Justin Bennett/X
Bennett believes Bitcoin has not yet convincingly reclaimed the diagonal support of an ascending channel on BTC's monthly chart, suggesting a correction is on the horizon.
“The fact is that nothing has changed in the overall picture. $49,000…$52,000…the same applies when it comes to wild fluctuations in the time frame.
But just keep thinking that these things are changing every hour.”
At the time of writing, Bitcoin is trading at $51,784, just below the diagonal support of Bennett's pattern.
Looking at decentralized exchange Injective (INJ) native asset, Bennett says the altcoin appears ripe for a strong corrective move lower towards its diagonal support at around $20.
The analyst notes that if INJ breaks below $31, the pullback will be confirmed.
“I've only seen a pessimistic take on INJ out of dozens all week.
I see no reason to be optimistic here.
Confirmation under $31.
Voided $37.
No emotions needed.”
At the time of writing, INJ is trading for $36.97, just below the trader's void price level.
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