Cryptocurrency analyst and trader Jason Pizzino gives his thoughts on the potential trajectory for the digital asset market going forward.
Pizzino tells According to its 328,000 YouTube subscribers, the Average True Range indicator indicates that “another important step” is imminent for Bitcoin (BTC) and other crypto assets.
The ATR is used to measure the volatility of an asset, with higher values indicating higher volatility and lower values indicating lower volatility.
According to Pizzino, Bitcoin recently witnessed a relatively narrow range and this could portend a bullish move forward.
“We’ve actually seen one of the smallest days since January. So Bitcoin did a $500 weekend range day on Saturday. When this happens, you will usually see some sort of wind-up period. You can see quite significant movement upwards on each of these occasions.”
The widely followed analyst says Bitcoin “still looks relatively good” and is well positioned for the “next stage.” According to Pizzino, Bitcoin must first undergo a consolidation phase before it can rise above the all-time high of $73,800 reached on March 14.
“That doesn’t mean we’re going to explode in a few days or weeks. But I think we can still take some time with this. Bitcoin price needs to consolidate above $72,000.”
Bitcoin is trading at $70,984 at the time of writing.
As for altcoins, Pizzino says the combined market capitalization of this class of crypto assets is currently in a phase similar to other periods leading up to a breakout.
“I see this as a stealth move for the altcoins. And the stronger will win if this breaks out. So the theory here is that we are in stealth – the stealth here is identified with small average true ranges of the sizes.
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