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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