This week, Bitcoin underwent a notable 10% decline, causing a ripple effect on various other cryptocurrencies, pulling them down by 10% to 20%. In a recent video update, analyst Jason Pizzino questioned whether this signifies the conclusion of a flash crash or if it’s just the initial phase. Pizzino discussed correction price targets and emphasized monitoring Bitcoin’s performance amid high expectations for the ETF. Despite optimism, he cautioned about potential challenges in the first half of 2024, anticipating a more complex market.
Looking back at 2023’s substantial gains, Pizzino emphasized the market’s ease and the emotional hurdles faced by traders and investors. Expanding the perspective to the broader market, Pizzino presented historical data on negative year-to-date closes and their subsequent impact. The analysis hints at a potentially challenging first half of 2024 for both stock markets and cryptocurrencies.
Analyzing Bitcoin’s macro cycle, Pizzino compared the current 14-month period to past cycles, suggesting a potential correction. Emphasizing the need for vigilance after an extended market growth phase, he delved into the 50% level for Bitcoin, noting a historical trend of testing and breaking through around 22 months from the low. Pizzino speculated on a possible breakout in September 2024, aligning with the latter part of the year.
Moving to micro-level analysis, he examined a chart pattern resembling a previous scenario in July 2024 and hinted at a potential flash crash during the ETF announcement.
Stressing careful observation and anticipation of market cues, Pizzino concluded by outlining potential time and price targets for a Bitcoin correction, suggesting a 30 to 60-day window and potential support levels around $35,000.
