Analyst Jason Pizzino Warns Against Expecting Major Altcoin Correction
Crypto analyst Jason Pizzino advises traders not to rely on a substantial correction in the altcoin market to buy at lower prices. Pizzino believes that recent history suggests an altcoin crash is unlikely.
Pizzino examines the monthly chart of TOTAL3, which tracks the total market cap of cryptocurrencies excluding Bitcoin, Ethereum, and stablecoins. He notes that TOTAL3 is currently in a consolidation phase, indicating a potential upward surge and indicating that a severe correction in the altcoin market is improbable.
Pizzino emphasizes that while corrections are possible in the future, they have not broken down historically. He also points out that Ethereum’s mild bear market suggests that altcoins are in a strong position and that ETH may be poised for its next leg up.
Ethereum’s Relatively Tame Bear Market Signals Strength for Altcoins
Pizzino highlights Ethereum’s trajectory and its approach to the 50% retracement level at $2,917. He notes that Ethereum’s pullbacks have only been around 28%, compared to Bitcoin’s 47% retracement from its low. This indicates that Ethereum has had better gains than Bitcoin so far.
At the time of writing, Ethereum is trading at $2,925, surpassing Pizzino’s 50% retracement level.
Conclusion
Jason Pizzino cautions against expecting a significant correction in the altcoin market. He points to historical patterns and the current consolidation phase as indicators that an altcoin crash is unlikely. Furthermore, he highlights Ethereum’s performance and suggests it signals strength for altcoins. Traders should consider these factors when making investment decisions in the cryptocurrency market.
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