A widely respected crypto analyst looks forward to what a new month could mean for the two largest crypto assets by market cap.
In a new Daily Price Action blog post, crypto trader Justin Bennett says yesterday’s sell-off in bitcoin (BTC) markets may just be down to institutional traders balancing their balance sheets.
“When major institutions close their books, we often see markets becoming erratic and indecisive in the last 24 to 48 hours of the month.
So it will be instructive to see how bitcoin trades in the first week of June.
But if the bulls cannot quickly retake $27,500-27,650, we expect another sell-off towards $26,500, potentially lower.
In any case, remember to trade BTC level versus level, respecting support as support and resistance as resistance.
With the crypto market trading sideways since March, it’s not the time to rush off and envision the next big move.
A better approach is to trade level by level and take what the market offers.”
Source: Justin Bennett/Daily Price Action
At the time of writing, Bitcoin is worth $26,887, just below the range Bennett says BTC bulls need to reclaim.
Looking to Ethereum (ETH), Bennett tells his 112,500 Twitter followers that ETH is not ready for large “home run” transactions.
“That’s why I said that under these conditions you should take what the market offers you.
Not the environment for home run trades.
ETH straight off the support and resistance I outlined in Tuesday’s blog post.”
Source: Justin Bennett/Twitter
Digging deeper into the aforementioned blog post, Bennett said in a Daily Price Action post on Tuesday that Ethereum has “liquidation clusters” at both $1,960 and $1,830.
“Liquidation clusters like this often act as price magnets.
This alone could trigger another rally in Ethereum and turn the recent consolidation into a continuation pattern.
To be fair, there is also a decent block of ETH long liquidations at $1,830.
So this could really go either way, especially as we near the last 24 hours of the month.
But the deciding factor as to whether we see $1,960 or $1,835 first will be the $1,887 level.
As long as ETH stays above on a 4-hour close basis, the next resistance and liquidation pool is $1,960.
Conversely, a sustained break of the 4-hour timeframe below $1,887 would confirm this consolidation as a divergence and open $1,835.
In any case, expect unpredictable price movements in the crypto market as we enter the last 24 hours of May.”
Source: Justin Bennett/Daily Price Action
At the time of writing, ETH is trading at $1,863.
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Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that you transfer and trade at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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