Renowned crypto analyst Jason Pizzino has alerted market participants of a potential sharp pullback in Bitcoin (BTC), noting technical patterns similar to those before significant corrections in 2016 and 2019. Pizzino anticipates a harsh retracement for the leading cryptocurrency.
Pizzino pointed out that BTC’s recent close below $42,230, under the Gann 50% retracement level, is a bearish signal. The Gann indicator is widely used by investors to identify key support and resistance levels, and to predict market tops and bottoms.
Using the Gann indicator, Pizzino observed a high-volume weekly candlestick closure below the 50% level, with Bitcoin already down 15% from its last peak. He suggests the next significant downward target could be around $37,000, at the next Gann 50% level.
Previously, Pizzino had warned that Bitcoin’s price action in 2016 and 2019 showed resistance at the Gann 50% correction level after initial recoveries from low points. He shared a chart in December 2023, questioning if Bitcoin’s history might repeat itself.
Moreover, Pizzino is monitoring Bitcoin’s price movements in lower time frames, noting that investors appear to be in a Wyckoff Distribution phase, typically indicative of selling. He highlighted that BTC recently closed a candlestick below the Gann 50% level, reinforcing the bearish outlook.