Crypto analyst Jason Pizzino sees parallels between Bitcoin’s current price action and deep corrective moves in 2016 and 2019. Therefore, the analyst warns his followers about a Bitcoin price drop. Elsewhere, analyst Benjamin Cowen similarly points lower to Pizzino.
The next downside target for Bitcoin: $37,000!
cryptokoin.comAs you’ve seen from , the spot Bitcoin ETF narrative wasn’t enough to send the BTC price soaring. The leading cryptocurrency has been floating around the range of 42 thousand 43 thousand dollars for a while. Analyst Jason Pizzino says BTC is respecting the Gann 50% retracement level as resistance following last week’s close below $42,230. Pizzino says:
Here we see extremely high volume and a weekly close below the Gann 50% level on the reversal bar. BTC is down 15% from its high. The next major downside target is the next Gann 50% level at $37,000. After all the hype, downside targets don’t seem that far off anymore.
Last week, Pizzino issued a warning saying that he respects the Gann 50% retracement level as resistance after BTC’s initial move from the bottoms in 2016 and 2019. In December, he shared a chart suggesting that BTC would correct after reaching the same technical indicator. In this context, the analyst asks, “Is Bitcoin history repeating itself?” said.
Benjamin Cowen updated his BTC price prediction
Investors are weighing the possibility of the Federal Reserve reversing its tight monetary policies in the coming months. Crypto analyst Benjamin Cowen is updating his perspective on Bitcoin amid these expectations. Cowen says risky assets like Bitcoin could actually lose value when the Fed starts lowering interest rates. In this context, the analyst makes the following assessment:
When rate cuts come, it’s generally not the most bullish thing for risk assets. This is not because interest rate cuts are not bullish on their own, but because interest rate cuts are theoretically bullish. However, the problem is not the interest rate cut itself. It is the reason for the interest rate reduction. And you have to imagine that in this cycle, even given where inflation is, there’s probably a reason why a rate cut is coming when inflation is this high. We had a Bitcoin mid-cycle peak of sorts last cycle, right around the time the interest rate cuts were coming (in September 2019)…
Analyst: These levels are on the cards for Bitcoin!
Cowen also warns that Bitcoin price could drop to test levels within the bull market support band formed by the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA). In this regard, Cowen says:
I think it will be useful to follow the eight-week moving average this week. Again, it’s currently around $42,300, which is right around the current price. If we break below this, we have a good chance of testing the bull market support band between $35,000 and $37,000. Meanwhile, consider around $36,000, which from the current price would mean a decline of about 13% to get back to the 21-week EMA and a decline of about 16%-17% to get back to the 20-week SMA… That’s a lot It’s a pattern we see often.
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