Crypto analyst Jason Pizzino altcoin warns its investors.
In a new strategy session, Pizzino reaches 290,000 YouTube subscribers BitcoinHe says how far (BTC) falls will determine the severity of a correction for altcoins.
“It looks like Bitcoin is now coming back to test $26,700. You also know that if we break below this level, we will probably test $26,000 or even $24,900.
What happens from this point on? Then we have the monthly 50% level where Bitcoin could return and test – $23,600. And this is sure to have dire consequences for altcoins. “I will look at ETH as its own separate beast and it is struggling too.”
According to the trader, a decline in altcoins will cause a significant number of traders to transfer some of their altcoin investments to BTC. This will help support and reduce the crypto king’s downtrend.
“But if Bitcoin comes back and breaks that 50%, $26,700, you will see altcoins continue to struggle as well. You can see them falling in USD values, and you see Bitcoin values falling as they try to hold their ground.
Once we get back to that $25,000 level, you will see even worse declines in these altcoins. Because these are some of the key levels that market participants, perhaps their algorithms, are looking for. But when these start to break down, there is a flight to safety… pushing back to BTC and even stablecoins. “This is probably why Bitcoin is still falling, but not as hard as altcoins would.”
Bitcoin is trading at $26,790 at the time of writing.