Leading crypto analyst says Bitcoin (BTC) and the rest of the digital asset markets are rebounding at the wise press conference given by Federal Reserve Chairman Jerome Powell to the Federal Open Market Committee (FOMC).
In the latest edition of his Cryptocademy newsletter, analyst Justin Bennett dived into charts to predict how long BTC, Ethereum (ETH) and FTX token (FTT) will rise.
“Bitcoin recorded an impressive rally today, with a gain of 7% as of this news release. Of course, most of this came after today’s Federal Open Market Committee meeting.
Now, I know a lot of people are looking to sell bitcoin at resistance, but I think this is a mistake…my base case was a continuation of the rally before the next drop.
However, it is also not a good time to go long in bitcoin with just under $23,000 trading. It would take a daily close higher than that to reveal $24,200.
Instead, I think it is best to watch for a retest of the $22,000 area for a possible long opportunity. As long as this continues, I think BTC looks good for an eventual move above $23,000.
If $22,000 fails, expect lower prices like $21,600.”
Bennett believes that Ethereum is on the verge of confirming that its recent sale was fake.
“I like Ethereum higher as long as it maintains channel support. However, ETH could also get a big show if we see a retest of the region between $1515 and $1530.
I think this is a really interesting area to watch over the next few days.
Just keep in mind that the $1700 area promises to be a massive test for ETH on the way up, so I would be surprised to see a break higher than that on the first try.”
Given the FT’s big move after the FOMC meeting, Bennett warns that it could be bogus.
“The FTT is getting more interesting with the daily close above the late May trend line, which is also the neckline of the inverted Head and Shoulders.
FTT held above that level for about a week until Monday’s close again below.
However, as I’ve mentioned several times, moves like this before a big event like FOMC can often be fake. This transition from FTT is no exception.
Going forward, I expect any retest of the $28 area to be in high demand. Likewise, the area above $30 is resistance.”
Finally, Bennett looks at the US Dollar Index (DXY), and measures the strength of the dollar against crypto assets. Bennett believes that DXY may be bullish in the near term for digital assets.
“At the moment, it looks like the DXY wants a downside move, which should continue the uptrend for risky assets in the short term.”
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrency or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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