Aussie Crypto Analyst Jason Pizzino Says Expect Pullbacks Amid Bitcoin Bull
First, Pizzino believes we are right about in the middle of what he calls the ‘everything bubble.’
And while predictions don’t happen at the exact time frames, he believes we will see a peak of stocks, real estate and crypto around 2026. Of course, there is no guarantee what peaks first but this chart serves as a rough guideline.
Pizzino also draws parallels between the current market cycle and historical lows from 1982-1983, suggesting that significant market rallies often precede economic downturns. He warns against being overly optimistic due to current market gains, emphasising the cyclical nature of economies and markets.
Look what happened in 1983 exactly 40 years ago, really big pump out of that low… This is basically the symptom of what is to come next, which is the collapse.
Crypto Fear and Greed Index as a Market Indicator
Pizzino begins with a discussion of the significance of the crypto Fear and Greed index reaching a new high of 79, indicating the market is entering an “extreme greed” phase.
This suggests a heightened level of market enthusiasm that historically precedes corrections, which offer a strategic point for investors to consider dollar-cost averaging (DCA) into positions.
The crypto Fear and Greed index has hit a new fresh high of 79…typically it doesn’t last that long in that reading before you get a correction.
Bitcoin’s Price Resistance Levels and Market Extension
Pizzino then goes into Bitcoin’s critical resistance levels around USD $50,500 to $52,000, noting that a clean breakthrough in these levels could mean a significant upward trajectory for Bitcoin’s price, potentially reaching up to around USD $60,000 to $62,000, which he describes as a 100% repeat of the previous run.
This analysis is grounded in recent market movements where Bitcoin has shown resilience by surpassing the USD $50,000 mark, indicating strong bullish momentum.
Pizzino emphasises the market’s extended state after a 22-week run from a cycle low, with only a brief two-week correction period, highlighting the importance of cautious trading in anticipation of how far the market could extend beyond these resistance levels.
He also addresses the potential outcomes if Bitcoin fails to sustain its breakthrough, suggesting that a failure at the USD $50,500 to $52,000 resistance levels and a fallback under the USD $49,000 mark could signal the market’s need for more time to consolidate and digest recent gains.
Pizzino points out the historical pattern of forming higher bases after significant runs, indicating that a period of sideways movement or slight retracement could be beneficial for setting a new foundation for future growth.
Should we break through $50.5 to $52k it should be reasonable running up…the difficulty is how far extended does it get.