Crypto News- In a recent video upload, Jason Pizzino, a seasoned macro investor and swing trader, voiced his belief that Bitcoin’s prolonged rally might be due for a pullback. Drawing attention to critical indicators shaping his market analysis, Pizzino highlighted the potential for significant shifts in the altcoin market leading up to the upcoming Bitcoin halving.
Analyst Predicts Bitcoin Correction on the Horizon as Altcoins Gear Up for a Rally
Pizzino emphasized the importance of market sentiment in his analysis, revealing it as a key factor guiding his predictions. Using the US Dollar Index Futures chart, he pointed out a downward trend in the dollar, attributing it to prevailing macroeconomic conditions and foreseeing further downside.
The swing trader found encouragement for Bitcoin and cryptocurrencies in the rallying stock market, particularly noting Bitcoin’s pause since December 5, coinciding with the 50% Fibonacci retracement level. Predicting a potential correction before a retest of this level, he speculated this event might occur as late as 2024. Pizzino’s optimistic target for Bitcoin was to surpass the $48,000 level, a monthly swing top established in March 2022.
Highlighting the longevity of positive market sentiment, Pizzino used the Fear and Greed Index to showcase a sustained series of higher highs and higher lows. However, he anticipated a shift in sentiment, introducing a more fearful tone into the market in line with the cyclic nature of the crypto space.
While Pizzino believed that Bitcoin’s rally had run its course and a pullback was imminent to alleviate market greed, he identified upside potential in the altcoin market. His analysis of the Total3 chart, reflecting the market cap of all cryptocurrencies excluding Bitcoin and Ethereum, pointed toward favorable conditions for altcoins amidst the broader market dynamics.
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