In the latest video analysis by Renowned crypto analyst Jason Pizzino, he begins by discussing Bitcoin’s fatal crash. Bitcoin hovered around $63,000 just days before the halving, a historical event in Bitcoin’s protocol that reduced the rate at which new bitcoins were created. Pizzino acknowledges the historical trend of Bitcoin experiencing price drops around this time or shortly after the halving.
30% Bitcoin Crash Incoming?
He started his analysis with the possibility of a Bitcoin crash and explored various scenarios, emphasizing the importance of being prepared for downside risks. Despite the uncertainty, Pizzino remains optimistic about the opportunities present in the market, particularly in strong altcoins. He encourages viewers to consider rotating their investments into these altcoins, suggesting that now is a favorable time to buy and build positions while prices are relatively low.
Key Resistance Level
Throughout the analysis, Pizzino provides technical insights into Bitcoin’s price movements, highlighting key resistance levels and potential corrections. He went deep in his analysis and mentioned the key resistance levels for Bitcoin, particularly at $67,000, $69,000, and $71,000.
He emphasized the need for Bitcoin to consolidate above $67,000 for sustained bullish momentum. He also warned of increased downside risks if Bitcoin failed to hold above $59,000 to $60,000, potentially leading to a 30% to 40% correction to the low to mid $50,000 range or even $44,000 to $48,000.
Also Read : Why Past Bitcoin Halvings May Not Predict Future Prices: Goldman’s Warns
Historical Flashback
He draws parallels to past halving events, using historical data to back his analysis and guide investors in understanding possible future outcomes. In the previous halving cycle of 2016, Bitcoin experienced notable price fluctuations. Before the halving event in 2016, Bitcoin’s price surged from $15 to $7, encountering a 50% correction.
Following the halving, there was another correction of about 25%. However, a bullish trend followed these corrections, leading to new all-time highs. BTC has already surpassed the last halving peak from 2020.
Did You Know : Top BRC-20 Altcoins Continue Bleeding! Will Ordinal Tokens Surge Post-Halving?
Risk Management in Downtrend
Pizzino says it’s crucial to handle risks when trading. He suggests considering how much risk you can take and making smart choices based on chances, not guarantees. He also talks about how the altcoin market changes and sees an opportunity to buy when prices drop, like during Bitcoin halvings.
Even though it might feel scary, he thinks it’s a good time to get in when others are afraid. He mentions times when big drops came before prices increased significantly. Overall, he advises people to be careful with risks and plan their moves, knowing prices could drop more but also go up a lot after halvings.
Are you ready to buy the dip?
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