Bitcoin: Decoding Signals for Potential Market Moves
A popular crypto analyst is drawing attention to potential parallels between Bitcoin's present technical signals and those witnessed before notable corrections in 2016 and 2019.
Jason Pizzino points out that Bitcoin faced resistance at the Gann 50% retracement level following a close below $42,230 last week. Gann Indicators, used by traders to pinpoint essential support and resistance levels and forecast market movements, revealed a significant development.
There it is – a weekly close under Gann 50% level on extremely high volume and reversal bar.#Bitcoin is down 15% from the high.
The next major downside target is the next Gann 50% level at $37,000.
After all the hype, now downside targets don't seem so far-fetched. 🔖 pic.twitter.com/N8DdCzop3d— Jason Pizzino 🌞 (@jasonpizzino) January 15, 2024
Pizzino highlights:
There it is – a weekly close under Gann 50% level on extremely high volume and reversal bar.#Bitcoin is down 15% from the high.
The next major downside target is the next Gann 50% level at $37,000.
After all the hype, now downside targets don't seem so far-fetched. 🔖 pic.twitter.com/N8DdCzop3d— Jason Pizzino 🌞 (@jasonpizzino) January 15, 2024
Reflecting on historical events, Pizzino recalls Bitcoin’s encounter with the Gann 50% retracement level in 2016 and 2019 post its initial upward trajectory. In December, he shared a chart implying a potential correction based on the same technical indicator, prompting the inquiry, “Is Bitcoin history repeating itself?”
It looks like #Bitcoin is in the Wyckoff Distribution stage atm which generally means investors are selling #Crypto – there's also the Gann 50% level that #BTC just closed under too. 👇
More info in today's video here: https://t.co/AEw3y0SCH3 pic.twitter.com/9Gpy7XqdRr
— Jason Pizzino 🌞 (@jasonpizzino) January 15, 2024
Analyzing Pizzino’s chart indicates a roughly 70% pullback in 2019 after Bitcoin ascended to its Gann 50% retracement level. Additionally, Pizzino closely scrutinizes Bitcoin’s shorter time frame price actions, noting a trend of coin sell-offs by BTC holders aligning with a Wyckoff Distribution Schematic—a pattern employed by traders to discern significant market tops.
READ MORE: Bitcoin Expert Samson Mow Predicts $1M Surge
Pizzino underscores this observation, stating, “Bitcoin seems to be in the Wyckoff Distribution stage, indicating a phase where investors are divesting from crypto. The recent closure below the Gann 50% level adds another layer of concern to the analysis.”
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
