- According to Aussie analyst Jason Pizzino, the current downtrend could drag on for a while before the market rebounds.
- However, Pizzino strongly believes the falling prices are just a correction and not a reversal from 2024’s bull cycle.
- He also notes that markets across the board are struggling over the past fortnight, with most major stocks and commodities down in value.
Is it time for diamond hands? Or is it time for investors to take profits and look for a new re-entry point? That is the hotly debated discussion going on among professional analysts and… not-so-professional Twitter users. With the halving barely 24 hours away, the community will get a clearer picture of the market cycle once we move forward. But Aussie analyst Jason Pizzino believes that several indicators already unveil the short-term direction for BTC’s price.
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Bitcoin’s price has hit new lows for the current correction, sinking to as low as $60K (AUD $94K) for the first time since March. However, the keyword here is “correction” and not downtrend. Pizzino believes that Bitcoin’s current cycle is exactly that – a correction – and is not a move away from the longer-term bull market the asset has mostly experienced in 2024.
To back this up, Pizzino’s analysis of a 3-day down signal suggests the potential for a shorter-term bear market. However, historically, this signal has been met with an eventual market rebound, often with BTC reaching new highs after a period of consolidation or falling prices. So even though the current correction may last multiple months, Pizzino sees this is a revaluation the market needed to have, thereby presenting a great buying opportunity for investors.
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Pizzino also notes that Bitcoin isn’t the only market experiencing a bit of a correction after a strong start to 2024. The oil and major stock indices (like Nasdaq and the S+P) have fallen of late too, suggesting the broader macroeconomic environment was running a little too hot and needed to settle – at least for now.
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