Aussie Analyst Warns Market Correction Could Worsen Under This Condition

By Ben Knight April 04, 2024 In Bitcoin, Market Analysis
  • Bitcoin has fallen 5% over the Easter weekend after finding resistance at USD $71K.
  • Aussie analyst Michael Pizzino believes that BTC may be poised to enter a lengthy period of consolidation, or even price drops, due to past data.
  • However, Pizzino also notes that the market is moving faster than ever before and that time-based predictions can be a little less reliable.

It’s been a shaky week for Bitcoin. After making a charge back towards its all-time high, it entered somewhat of an Easter chocolate coma to drop below USD $66K (AUD $100K). This represented a 5% drop over the past seven days, although for now it appears the coin has found a decent support level above USD $65K (AUD $99K). However, Aussie analyst Michael Pizzino believes this correction may just be getting started if a few factors don’t go the market’s way. 

Related: ‘Rich Dad, Poor Dad’ Author Robert Kiyosaki Shares His Strategy for Bitcoin’s Drop to $200

$64.5K Pivot Point Vital for Short-Term Performance

Michael’s video hones in on several support and resistance levels that Bitcoin has forged over its past bull run, each which has consistently provided a cushion and ceiling for the crypto’s price runs. While BTC keeps bouncing off the USD $70K (AUD $106K) barrier, it has also consistently found relief at around the USD $64.5K (AUD $98.5K) mark, where it appears several triggers hit and investors begin buying back into the coin. However, as the market looks poised to create potentially higher lows, Pizzino believes this may signal a continued downward trend. If that trend breaks below the $64.5K support, BTC might even sink below USD $60K (AUD $91.3K) in the future.

Analysing the coin from a much longer timeframe, Pizzino believes this current bull cycle is mirroring the one that occurred between 2015-2017, which culminated in a significant bull run before hitting a roadblock in 2018. Based on this data, each historic market cycle has encountered a lengthy drawdown/consolidation period of about 3-6 months. While these timeframes have eventually made way for a new all-time high, this current cycle is yet to encounter a true medium-term retraction. 

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Source: Michael Pizzino via YouTube

However, according to Pizzino, the crypto markets are faster than ever before and it’s possible this cycle simply ignores the precedent and pushes forward.  

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Ben Knight
Author

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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