A much-followed crypto analyst looks forward to what another month could mean for the two largest crypto assets by market capitalization.
In a new Daily Price Action blog post, crypto trader Justin Bennett say that yesterday’s sell-off in the Bitcoin (BTC) markets may simply be due to institutional traders balancing their books.
“As major institutions close their books, we often see markets become erratic and indecisive in the last 24-48 hours of the month.
So how Bitcoin trades in the first week of June will tell.
But if bulls can’t regain $27,500-$27,650 soon, we’re looking at another sell-off towards $26,500, possibly lower.
Anyway, remember to trade BTC level to level and respect support as support and resistance as resistance.
Given how sideways the crypto market has been since March, now is not the time to swing the fence and take the next big step.
A better approach is to trade level by level and take what the market gives you.”
Bitcoin is worth $26,887 at the time of writing, just below the area that Bennett believes BTC bulls should reclaim.
Looking at Ethereum (ETH), Bennett tells are 112,500 Twitter followers that ETH is not ready for large, “home run” trades.
“That’s why I said you have to take what the market gives you in these circumstances.
Not the environment for proprietary trading.
ETH right after the support and resistance I outlined in Tuesday’s blog post.
Dive 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.
“These types of liquidation clusters often act as price magnets.
That alone could trigger another Ethereum rally, turning 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 really could go either way, especially as we head into the last 24 hours of the month.
But the determining factor of whether we see $1,960 or $1,835 first is the $1,887 level.
As long as ETH remains above that on a 4-hour close basis, the next resistance and liquidation pool is $1,960.
Conversely, a sustained 4-hour time frame break below $1,887 would confirm this consolidation as an anomaly and open $1,835.
Either way, expect erratic price action from the crypto market as we enter the last 24 hours of May.
ETH is trading at $1,863 at the time of writing.
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