bitcoin price has had enormous bullish momentum since approval and launch of Spot bitcoin ETF. However, one crypto analyst, Jason Pizzino, predicts a temporary stop in the growth trajectory, citing bitcoin's proximity to a crucial resistance point that could result in a significant price drop.
Analyst predicts bitcoin price correction
In a recent Youtube video Posted on Friday, January 12, Pizzino shared his thoughts on the current situation bitcoin-market-cap-3-3-trillion-esg-fund-inflows/” target=”_blank” rel=”nofollow”>bitcoin market conditions, the largest cryptocurrency in the world. According to the analyst, the price of top crypto It is expected to fall between 20% and 22%, reaching possible support levels between $37,000 and $39,000 ahead of the bitcoin halving.
He reduce by half expected to take place in April 2024 is an event where bitcoin mining rewards would be halved to reduce the number of new coins entering the market. This reduction effectively decreases the cryptocurrency. bitcoin-supply-shock-57-of-btc-hasnt-moved-2-years/” target=”_blank” rel=”nofollow”>total supply and supposedly increases its value through scarcity.
Pizzino confirmed his predictions noting that btc is currently trading at a key resistance level in the bull market that could result in a significant price correction. He acknowledged that the enthusiasm surrounding bitcoin Spot ETF has successfully taken the cryptocurrency to its recent highs. However, the cryptanalyst also highlighted the possibility of complacency following the current uproar that could lead to a major crypto-founder-predicts-30-to-40-bitcoin-price-correction-if-sec-approves-etf/” target=”_blank” rel=”nofollow”>price correction.
bitcoin slides back into the $42K territory. Chart: TradingView.com
While the cryptocurrency has seen an impressive bullish trend in recent months, Pizzino emphasized the importance of understanding historical price patterns and market behaviors. He highlighted the importance of being prepared for any possible correction or pullback in the price of bitcoin.
btc sinks below $42,000
Following the official approval of bitcoin Spot ETFs by the United States Securities and Exchange Commission (SECOND), the price of bitcoin has skyrocketed. The cryptocurrency rose to $49,000 on Thursday, January 11, after spot bitcoin ETFs were launched and investors officially began trading.
However, the price of bitcoin saw a massive drop recently after the news of bitcoin-spot-etfs/” target=”_blank” rel=”nofollow”>Vanguard restricting its clients from trading spot bitcoin ETFs on its platform. As a result, the cryptocurrency experienced a price drop below $42,000, remaining more than $7,000 below its 2024 high of $49,000.
Currently, the coin has regained some of its lost gains and at the time of writing its current trading price is $43,158.52 according to CoinMarketCap. While the drop is perceived as a temporary setback for the cryptocurrency market, it is also seen as an opportunity to enter the market at more affordable price levels.
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