Crypto analyst Jason Pizzino thinks one scenario is likely to play out for both Bitcoin (BTC) and the S&P 500 (SPX) in the coming months.
In a new strategy session, Pizzino tells its 290,000 YouTube subscribers that could send both BTC and the S&P 500 plummeting in early October before entering a bull market cycle.
“I think this period here, that quarter three of 2023, early quarter four, may be the next best opportunities for those [Bitcoin] DCAs (dollar cost average)…
Now let’s take a quick look at the downside, because from here it won’t all go well at once because we have a lot of resistance from above. We still have a 50% level here, the macro level at $23,600, which is the low in the cycle up to the current first range.
In the short term, October may head lower because, as we’ve seen in the past with the S&P 500, we do see some of these lows here. Sometimes we get lows in October, sometimes we get lows in March, which both happened this time, and maybe the S&P just hits a little bit lower [at 4,110 points] for October and it starts to trend higher over the course of the fourth and first quarters [2024].
For Bitcoin, it may have a nice green September, a quick move towards [$23,630] for October and then perhaps a higher close [at $28,518]. That could also be a possibility there.”
The trader is also keeping a close eye on key price levels to determine whether Bitcoin will confirm a massive bull market cycle after October.
“And then let’s see if the market can lift these important levels. $28,500 is the real big trigger I’m looking for here for consolidation so we can start testing $32,000, which is the white line here. And that would then reduce the chances of further downside moves beyond $25,000.
Now the last white lines up are at 50%. That’s the $42,000 level, or $42,200 to be more precise, and then the monthly swing top of $48,200. So it will be quite significant levels when this market starts to break the $32,000 barrier and of course throw in $35,000, $38,000 and of course the psychological number of $40,000 for good measure.”
At the time of writing, the S&P 500 is at 4,288 points. Bitcoin is trading at $27,522 at the time of writing, down 1.5% in the past 24 hours.
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Generated image: Midjourney