Aussie Analyst Flags a Sneaky Bitcoin Shift That Might Trick Many

By Ben Knight February 05, 2024 In Australia, Bitcoin
  • Bitcoin price likely to continue consolidating before next price run, with a fall lower likely to precede any new yearly highs. 
  • Bitcoin trends may be short-lived as the spot price bounces between USD $40 and $46K.
  • Cardano has fallen 30+% from its yearly high, demonstrating a weaker market than some of its contemporaries.
  • Through a longer-term lens though, Michael Pizzino suggests Cardano is doing fine.

Bitcoin has more or less been in a holding pattern over the past seven days, following weeks of sporadic price movement as spot ETF trading got underway. In the aftermath of the Bitcoin ETF announcement, where the price of BTC got very close to breaching USD $50K (AUD $77K), the price quickly “corrected” by dropping 21.3% from its high. This is in line with previous corrections during Bitcoin’s run from late 2023 until now. So the question remains – was this post-ETF slump the last before BTC finally hits the USD $50K milestone? Or is there more to come?

Crypto Trader Michael Pizzino Believes More Sideways Movement Likely

Unfortunately for those wanting some action in BTC’s price, they may be waiting a while before any significant trends emerge, according to Michael Pizzino. In fact, he strongly believes that Bitcoin is likely to fall to new lows before it finally breaches its resistance level at around $50K.

Aside from its major correction, Bitcoin’s price has consistently traded between about USD $40.5K (AUD $62.3K) and $46K (AUD $70.8K) in what’s known as the “consolidation zone”. While the coin may show signs of up and down trends in the short-term, there is unlikely to be any true macro trends that emerge until BTC’s price breaks out from this zone. Smaller price runs can provide experienced traders with some excellent profit opportunities. 

Source: Michael Pizzino/ YouTube

But for most, it’s important to be wary of what may appear to be a positive trend – as it can very quickly become muted in this period of consolidation.  


Cardano Market “Weaker” In Short-Term

In an analysis of Cardano (ADA) Michael Pizzino points out that the market has fallen nearly 34% from its most recent top in December – which matches its gains from its recent low in September 2023. Basically, it means that ADA is sitting smack-bang in the middle as investors gear up for the next full-on bull market. So in the long-term, Cardano is doing a-okay. 

However from a shorter-term perspective, Pizzino believes that Cardano’s market looks a bit weaker – especially in the context of other coin’s performances. Relative to its yearly high, ADA’s price has fallen further than most other similar coins (including Solana and Bitcoin) and is showing a stronger downtrend than competitors. With its support level sitting at about $0.45 (AUD $0.69), ADA is at greater risk of falling below that price point and forming a true downtrend. 

Of course, this is all based on technical analysis and historic data. While a decent indicator of what may occur in the future, the crypto market can be fickle and news – both bullish and bearish – can change the course of a market in the span of minutes. 

Ben Knight

Ben Knight

Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.

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