A closely watched crypto strategist warns that Bitcoin (BTC) is giving off the same technical value as before the crypto king’s deep corrective actions in 2016 and 2019.
Analyst Jason Pizzino tells his 94,700 followers on social media platform
Traders use Gann indicators to discover key support and resistance levels and to predict market tops and bottoms.
Says Pizzino,
“There it is – a weekly close below the 50% Gann level on extremely high volume and a reversal bar.
Bitcoin is down 15% from its peak. The next major negative target is the next Gann 50% level at $37,000.
After all the hype, the downward targets now don’t seem so far-fetched.”
Last week, Pizzano issued a warning, stating that BTC also respected the Gann 50% retracement level as resistance in 2016 and 2019 after the initial move from the lows. And in December, he shared a chart suggesting that BTC could correct after hitting the same technical indicator.
“Bitcoin history repeating itself?”
Looking at Pizzino’s chart, it appears that BTC has retreated by around 70% in 2019 after recovering to the Gann-50% retracement level.
Pizzino also keeps a close eye on Bitcoin’s price action on the lower time frames. According to the analyst, BTC holders are currently selling their coins based on a Wyckoff Distribution Schematic.
The chart is a pattern that traders use to identify the major market tops.
Says Pizzino,
“It appears that Bitcoin is currently in the Wyckoff Distribution phase, which generally means investors are selling crypto. There is also the 50% Gann level that BTC closed just below.”
At the time of writing, Bitcoin is trading at $42,603.
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Generated image: DALLE3