A widely followed crypto analyst is warning traders not to count on a significant correction in the altcoin market to profit at lower prices.
In a new video updatecrypto strategist Jason Pizzino tells his 311,000 YouTube subscribers that recent history indicates an impending altcoin crash is not a likely scenario.
Pizzino says he looks at TOTAL3’s monthly chart, which tracks the total market capitalization of crypto assets, excluding Bitcoin (BTC), Ethereum (ETH) and stablecoins. According to the trader, TOTAL3 is now in the midst of a consolidation phase in preparation for a burst to the upside, indicating that a serious correction in the altcoin market is unlikely.
It is now the sixth month in a row that the market capitalization of altcoins has risen. Of course, eventually we do have some kind of corrections, but when we look at the monthly chart, the past corrections, they are not broken out on the swing chart.
You’ve had lows similar to what we saw last month and then you need one, two, three – maybe two or three months to re-accumulate after such a strong move before the price goes back up.
So if, after this period, we find ourselves in the midst of something similar to what has happened in previous cycles, then it reinforces to me that we are unlikely to be hoping and waiting for larger pullbacks. They will probably come, at least one in the cycle, but it doesn’t seem like this is the right time.”
According to Pizzino, Ethereum’s (ETH) relatively tame bear market indicates that altcoins are in a strong position and that ETH could be ready to make its next move higher.
“ETH is also on a very similar trajectory – we are moving towards 50% [retracement level at $2,917]. It looks like we’re just a few dollars away from that now and these pullbacks on Ethereum are, funnily enough, only about 28%. We’ll take it from the first jump it made from its low point – which was 47%.
That was from the low point in June and bottomed out much earlier than Bitcoin. You had a low in June for ETH and a low in November for Bitcoin, so ETH has had a better run at that point in terms of gains.”
Ethereum is trading at $2,925 at the time of writing, above Pizzino’s 50% retracement level.
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