The price of Bitcoin has been on a massive bullish momentum since the approval and launch of Spot Bitcoin ETFs. However, a crypto analyst, Jason Pizzino, predicts a temporary halt in the growing trajectory, citing Bitcoin’s proximity to a crucial resistance point that could result in a significant price drop.
In a recent YouTube video published on Friday, January 12, Pizzino shared his insights into the current market conditions of Bitcoin, the world’s largest cryptocurrency. According to the analyst, the price of the top crypto is expected to drop by 20% to 22%, reaching possible support levels of $37,000 to $39,000 before the Bitcoin halving. Pizzino substantiated his predictions by pointing out 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 excitement surrounding Spot Bitcoin ETFs has successfully pushed the cryptocurrency to its recent highs. However, the crypto analyst also highlighted a possibility of complacency following the present hype which could lead to a major price correction.
The halving, which is expected to take place in April 2024, is an event that would see Bitcoin mining rewards cut by half to reduce the number of new coins entering the market. This reduction effectively decreases the cryptocurrency’s total supply and supposedly increases its value through scarcity. Pizzino believes that the proximity to the halving event could also contribute to the potential price drop as investors may take profits and sell their holdings.
While the crypto has experienced an impressive uptrend in recent months, Pizzino emphasized the significance of understanding historical price patterns and market behaviors. He stressed the importance of being prepared for any potential correction or retracement in the price of Bitcoin. Examining past price movements can provide valuable insights into potential future trends in the cryptocurrency market.
Following the official approval of Spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC), the price of Bitcoin has been skyrocketing. The cryptocurrency surged to $49,000 on Thursday, January 11, after Spot Bitcoin ETFs had launched and investors had started trading officially. However, Bitcoin’s price experienced a massive downturn recently after news of Vanguard restricting its customers from trading Spot Bitcoin ETFs on its platform spread. As a result, the cryptocurrency experienced a price drop below $42,000, falling more than $7,000 short of its 2024 peak of $49,000.
Presently, the coin has recouped some of its lost gains and at the time of writing it’s current trading price is at $43,158.52 according to CoinMarketCap. While the dip is perceived as a temporary setback for the crypto market, it is also regarded as an opportunity to enter the market at more affordable price levels. Traders and investors who have been waiting for a pullback in Bitcoin’s price may see this as a prime opportunity to buy and potentially profit from the expected future price increase leading up to the halving event.
Jason Pizzino’s analysis suggests that the price of Bitcoin is likely to experience a significant drop in the near future. Factors such as the current resistance level, complacency in the market, and the upcoming halving event all contribute to this prediction. However, it is important to note that the cryptocurrency market is highly volatile and unpredictable, and past performance is not indicative of future results. Investors are advised to conduct their own research and make informed decisions when it comes to buying, selling, or holding Bitcoin.
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