Cryptocurrency analyst and trader Justin Bennett is pointing out the key levels that Bitcoin and Ethereum need to overcome before they can surge higher.
Starting off with Bitcoin, Bennett says in a newsletter that the flagship cryptocurrency could rise to $60,000 if it breaks above two resistance levels in quick succession.
“The real test for buyers is the $50,000 region, which is the descending trend line from the all-time high.
Above $50,000 is an even bigger test for bulls around $53,000 to $54,000.
If BTC can get above that $53,000 to $54,000 area on a daily closing basis, we could see a move back to $60,000 and potentially higher.”
The cryptocurrency analyst and trader also says that Bitcoin could fall to a recent low if it stays in the current range.
“We don’t have a confirmed breakout just yet. And as long as Bitcoin is below $50,000 and $54,000, I’m going to continue to eye the $42,000 region just in case.”
Bitcoin is trading at $51,105 at the time of writing.
Next up is leading smart contract platform Ethereum (ETH). According to Bennett, Ethereum is currently threatening to breach a diagonal resistance.
“ETH is testing the descending trend line from the December 1st high. That level comes in right around $4,050.
A close above that could extend prices toward $4,200. However, I’d like to see ETHUSDT get back above $4,500 to confirm the first higher high since November.
Until that time, there’s a chance we get another rotation into the $3,500 to $3,700 support area.”
Bennett also takes a look at Chainlink (LINK), a platform that provides real-world data to blockchain networks. According to Bennett, Chainlink could surge if it breaks a critical resistance area.
“LINK is also testing a resistance level today. In this case, it’s the $20.40 area that buyers need to clear on a daily closing basis to expose $23. Above $23 is $26.50.”
The crypto analyst and trader says Chainlink could alternatively dip drastically if the entire crypto market turns bearish.
“On the other hand, if we were to see the crypto market take another hit in the coming days, I’d keep a close eye on the $17 support region for Chainlink.
With all of that said, I did think there was a good chance we’d see LINK test the multi-year channel support between $14 and $15.”