Over the last two weeks, Bitcoin (BTC) has been on a decline as traders wait for a definitive move over or below the $40,000 price barrier. Overall, the trend is negative until the $43K level is breached.
The price of bitcoin has risen past the $38,000 mark. It is currently seeing resistance near $39,200. The next major resistance level could be $39,500, after which the price could begin to rise steadily. In this event, the bears may try to break through the $40,000 mark. On the downside, the 38,200 level serves as initial support. Near $38,000, the next key support, below which the price may encounter increased selling pressure.
Are more Corrections Incoming for BTC and ETH?
A well-known expert has issued a warning to cryptocurrency investors, claiming that Bitcoin and Ethereum (ETH) are on the verge of launching significant corrective moves before the next bull cycle can begin.
Justin Bennett, a top crypto strategist, said that he’s keeping a careful eye on the TOTAL chart, which shows the total market capitalization of all digital assets.
“[The] anticipated cycle low for TOTAL (total crypto market cap) is $760 million. Lower if we don’t get one last relief rally. Most think the current pullback leads to the next cycle low. I think we see one last relief rally before it happens. BTC $52K, ETH $4K before [correction].”
According to Bennett, The $TOTAL chart is poised for one more rally this cycle before shattering its diagonal support and losing more than half of its value. As per analyst, the TOTAL market cap will be $760 million by May 2023, implying a 55 percent drop from the current $1.72 trillion prices of all crypto assets.
During the corrective period, the crypto expert believes Bitcoin and Ethereum will return to their 2017 highs. He estimates that the cycle lows for BTC and ETH will be around $18k-$20k and $1k-$1.4k, respectively.
Bennett anticipates the crypto markets will go through a long consolidation phase after bottoming out next year when it comes to the timing of the next bull cycle.