A widely followed crypto analyst is warning traders not to bank on a significant correction in the altcoin market to scoop up at lower prices.
In a new video update, crypto strategist Jason Pizzino tells his 311,000 YouTube subscribers that recent history indicates an upcoming altcoin crash isn’t a likely scenario.
Pizzino says he’s looking at the monthly chart of TOTAL3, which tracks the total market cap 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, suggesting that a severe correction in the altcoin market is unlikely.
It’s the sixth straight month now for the altcoin market cap to be up. Of course, eventually, we do have some sort of corrections but when we’re looking at the monthly chart, the corrections in the past, they have not broken down on the swing chart.
You’ve had the lows holding out similar to what we just saw last month and then needing one, two, three – maybe two or three months to reaccumulate after such a strong move before it then pumps again.
So if we are in the midst of something similar to what’s happened in previous cycles, after this period, then again that reinforces to me that hoping and waiting for bigger pullbacks is unlikely. They probably will come, at least one in the cycle, but it doesn’t seem like now is that timing.”
According to Pizzino, Ethereum’s (ETH) relatively tame bear market is hinting that altcoins are in a strong spot and that ETH could be ready to ignite its next leg up.
“ETH is also in a very similar trajectory – we’re heading up into the 50% [retracement level at $2,917]. It looks like we’re a few bucks away from that right now and these pullbacks on Ethereum, crazily enough, have only been about 28%. We take it from the first bounce that it had out of its low – that was 47%.
That was from the low in June and it bottomed much much sooner than Bitcoin. You had a June low for ETH and a November low for Bitcoin, so ETH has had a better run at that point in terms of the gains.”
Ethereum is trading for $2,925 at time of writing, above Pizzino’s 50% retracement level.
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- Source: https://dailyhodl.com/2024/02/19/dont-count-on-significant-altcoin-correction-according-to-analyst-jason-pizzino-heres-why/
