Crypto analyst Jason Pizzino is placing altcoin investors on alert.
In a new strategy session, Pizzino tells his 290,000 YouTube subscribers that how far Bitcoin (BTC) dips will determine the severity of a correction for altcoins.
“So, it looks like [Bitcoin is] coming back to test [$26,700] now. You guys know if we get a breakdown of that, we’re probably going to come back to test $26,000, potentially even test $24,900.
What happens from that point? Well, then we have the monthly 50% level that Bitcoin may come back and test – $23,600. And that will, guaranteed, have dire consequences on altcoins. I’ll look at ETH as a separate beast on its own, and that’s also struggling.”
According to the trader, a decline in altcoins will prompt a significant number of traders to transfer some of their alt investments over to BTC, helping to prop it up and lessen the crypto king’s downtrend.
“But if Bitcoin does come back and break this 50%, $26,700, you’re, going to see altcoins continue to struggle as well. You can see them dropping on the USD values and you are seeing them drop, trying to hold their ground on their Bitcoin values.
Once we get back to that $25,000, you’re going to see even worse declines on those altcoins. Because these are some of those key levels in the market that participants look for, maybe their algorithms. But when those start to break, then there’s a flight to safety… push it back into BTC or even into stablecoins, which is possibly why Bitcoin still drops but doesn’t drop as hard as the altcoins will drop.”
Bitcoin is trading at $26,790 at time of writing.
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