A closely followed crypto analyst says that Bitcoin (BTC) could suddenly plummet in value if one key level is lost as support.
In a new video update, crypto strategist Jason Pizzino tells his 332,000 YouTube subscribers that if Bitcoin falls below $53,500, there is cause for concern that the crypto king may be flipping bearish.
“We’re still in a slightly stronger stance to then test the 50% level again [at $61,422]…
Is it going to be the bulls that take control, get above 50%? Or is it going to be the bears that take control and reject 50% again to close underneath that $53,500 level for BTC?
So as a recap, my view hasn’t changed on Bitcoin: the bull market support level hasn’t broken down… I’d be on high alert if Bitcoin broke from $53,000.”
The analyst also believes that Bitcoin could witness wild price swings in the near term due to global macroeconomic uncertainty.
“Basically it’s a choppy market at this stage, on top of all the economic recession [concerns], interest rates, Japanese [yen] carry trade, stuff going on with the stock market – all that sort of uncertainty surrounding these markets.”
Lastly, the analyst says that the Fear and Greed Index, a measure of market sentiment with values ranging from 0 to 100, is showing “extreme fear,” which he suggests could be a positive sign as it may indicate over-selling of digital assets.
“Bitcoin and crypto is extreme fear again, which I think is a good sign here, especially considering it wasn’t able to get up to the greed, so quickly.”
Bitcoin is trading for $59,662 at time of writing, up nearly 2% in the last 24 hours.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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