Jason Pizzino Predicts Potential Bitcoin Bounce Amid Extreme Fear

The fear is once again extreme. We’ve got signs that the market is yet again resetting, preparing for the next big move.

Jason Pizzino

That’s how Jason Pizzino, Aussie analyst and host of a YouTube channel with 332K subscribers, opened his latest video in reaction to the flash crash that pushed Bitcoin below US$60K (AU$88K). For the first time in a while, Bitcoin and the crypto market are touching the fear zone once again.

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Pizzino believes this is the set-up for a potential upward bounce:

Only now have we really reset the market sentiment. For a long time, Bitcoin had not fallen back into the fearful zone.

Jason Pizzino

There have been a few occasions where the crypto market has experienced a neutral sentiment but hasn’t spent any meaningful amount of time in the Fear Zone – or even the Extreme Fear Zone for that matter.

It Took Time to Get Here, So What Now?

Pizzino says getting to this stage has “taken the good part of 5 months”, with the all-time high in March now 165 days behind us. Bitcoin had hit US$73,750 (AU$108,610) on 14 March 2024, just two months after the launch of the Spot Bitcoin exchange-traded funds (ETFs) in the US.

This was the first of two types of funds allowed by the Securities and Exchange Commission (SEC), the other being for Ethereum.

Moving to the technical points, Pizzino said in a recent post on X that BTC faced a setback as it was unable to breach the significant 50% retracement levels for both short-term and long-term trends.

This rejection at these key Fibonacci levels suggests that the rally lacked sufficient buying power, casting doubt on the strength of the recovery. He identifies the support range for Bitcoin between US$53,000 (AU$78,022) and US$56,000 (AU$82,439), where the market has previously shown interest in buying, helping stabilise the price.

Related: Analysts on How Supply Overhang and Market Shocks Shape BTC Liquidity

Given the weak volume accompanying this recent rally, Pizzino seems cautious and thinks we could see a dip slightly lower within this support zone.

I wouldn’t be surprised to see BTC test slightly lower prices around this zone as the volume has been quite weak on this rally.

Jason Pizzino

The low trading volume during the rally suggests a lack of conviction among buyers, which typically indicates that the price increase may not be sustainable and could be vulnerable to a downturn – at least in the short-term.