Jason Pizzino, an experienced macro investor and swing trader, recently introduce His analysis indicates a possible setback for bitcoin.
Their observations, based on a deep understanding of market dynamics, suggest that bitcoin's prolonged rally could soon give way to new corrections.
Altcoins will shine as bitcoin corrects
Pizzino's analysis is based on a comprehensive review of several market indicators. The analyst has been following the altcoin sector closely, noting a buildup of bullish potential that could lead to shocking moves in the market, especially with the upcoming bitcoin halving in sight.
This anticipation of a change in market sentiment is further supported by your examination of the US Dollar Index futures chart, which shows a downward trend and recent significant declines in a single trading day.
Pizzino interprets these movements as indicators of further decline, influenced by general macroeconomic conditions.
As bitcoin braces for potential setbacks, Pizzino's analysis reveals a silver lining for the broader cryptocurrency market, particularly altcoins. Their study of the Total3 chart, excluding bitcoin and ethereum, shows latent potential for growth in the altcoin sector.
This observation aligns with the cyclical nature of the cryptocurrency market, characterized by alternating periods of fear and greed. According to Pizzino, the market is currently experiencing one of its longest periods of positive sentiment, a trend he expects to change in line with historical market behaviors.
bitcoin's Strong Support Zone and Emerging Altcoin Focus
In parallel, another prominent crypto analyst, Ali Charts, has identified a critical support zone for bitcoin. Between $37,150 and $38,360, a substantial amount of bitcoin transactions have occurred, with approximately 1.52 million addresses purchasing around 534,000 btc.
In case of a deeper correction, bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin finds solid support between $37,150 and $38,360. This zone is supported by 1.52 million addresses with 534,000 $btc.
Also, watch out for two resistance walls that could keep the btc?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#btc bullish trend at bay: one at $43,850 and another at $46,400. pic.twitter.com/NGm1XpMOLF
—Ali (@ali_charts) December 11, 2023
This important level of accumulation has established a solid foundation, which could limit any further decline in bitcoin's value below that level.
Despite the correction, bitcoin has shown resilience in its recovery from recent declines. Although the asset is still down 2.7% over the past week and almost 1% over the past 24 hours, it has managed to break through the $42,000 mark after previously falling below $41,000 on Tuesday.
However, a notable decline in bitcoin's daily trading volume, from $30 billion earlier this week to $13.6 billion, suggests a shift in investors' focus toward the altcoin market. This aligns with Pizzino's prediction and could be the harbinger of a new phase in the cryptocurrency market, where altcoins demonstrate a significant rally alongside bitcoin.
Featured image from Unsplash, chart from TradingView
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