This week Bitcoin experienced a sharp decline of over 10%, dragging several other cryptocurrencies down by 10% to 20%. Analyst Jason Pizzino addressed this in a recent video update, pondering whether it marks the end of a flash crash or if it’s just the beginning.
Pizzino presented price targets in case of a correction. Stressing the focus on Bitcoin’s performance, he noted the current market sentiment with high expectations from the ETF. Despite the excitement, Pizzino warned of potential challenges in the first half of 2024, predicting a trickier market.
Reflecting on 2023, which saw significant gains, Pizzino highlighted the ease of the market and the emotional challenges for traders and investors. Moving to the broader market perspective, Pizzino presented historical data on negative year-to-date closes and their impact on the following year. The analysis suggested a potentially tricky first half of 2024 for both stock markets and cryptocurrencies.
Addressing Bitcoin’s macro cycle, Pizzino compared the current 14-month period with previous cycles, hinting at a possible correction. He stressed the importance of remaining vigilant, especially after an extended period of market growth.
The discussion extended to the 50% level for Bitcoin, indicating a historical pattern of testing and breaking through after approximately 22 months from the low. Pizzino used this information to speculate on a potential breakout around September 2024, aligning with the second half of the year.
Furthermore, he discussed the micro-level analysis and examined a chart pattern similar to a previous market scenario in July 2024. He hinted at a potential flash crash around the ETF announcement, highlighting the need for careful observation and an anticipation of market clues.
Closing the analysis, Pizzino outlined potential time and price targets for a Bitcoin correction, suggesting a 30 to 60-day window and potential support levels around $35,000.