Bitcoin (BTC) Is Still at Risk Of Massive Plunge – Analyst Maps Low Levels – NewsTo
Bitcoin (BTC) Is Still at Risk Of Massive Plunge – Analyst Maps Low Levels

Bitcoin (BTC) Is Still at Risk Of Massive Plunge – Analyst Maps Low Levels


If you’re invested in Bitcoin, you might want to pay attention to what crypto expert Jason Pizzino has to say. 

As the leading cryptocurrency struggles to break key levels, Pizzino warns investors of potential downside risks, despite its recent 5% price increase from the April low. In a recent YouTube video, Pizzino highlights that Bitcoin’s recovery may just be a “pity bounce” before a further downtrend. 

Keep reading to find out why he believes that Bitcoin may not be on track to reach new highs anytime soon.

BTC Struggling to Break Key Levels

Pizzino highlights that Bitcoin has not yet broken past the crucial $28,500 level and the 50% Fibonacci retracement level, which currently stands at $29,337. He explains that Bitcoin must surpass these levels for short-term strength to enter the market, allowing it to attempt to break the $30,000 and $31,000 barriers once again. However, he emphasizes that the current rally seems more like a temporary surge facing diagonal resistance.

Related: BTC Price Analysis: Bitcoin Bull Run Fades Below $30k Amid U.S Banking Crisis – Coinpedia Fintech News

Potential Downtrend Continuation

According to Pizzino, Bitcoin is likely to experience a downward retracement, continuing the downtrend that followed the cryptocurrency’s nearly 100% rally over five months. 

He states, “Unless this is a last Hail Mary attempt to take the tops out, I don’t expect this to be that price to the upside. It’s just a bit of a pity bounce before we continue to the downside.” Pizzino identifies key price levels to watch as $26,500, $25,300, and around the $24,000 mark at $23,900.

Declining Leverage Ratio Signals Low Volatility

Meanwhile, a key metric for measuring leverage used in the Bitcoin market has been decreasing, indicating a potential decline in future price volatility. The estimated leverage ratio, calculated by dividing the dollar value locked in active open perpetual futures contracts by the total number of coins held by derivatives exchanges, dropped to 0.195 on April 26, the lowest since December 20, 2021, according to data from analytics firm CryptoQuant.

Since October 2022, the ratio has halved, signaling a significant reduction in the extent of leverage used in the market to amplify returns. A decreasing ratio may also imply less sensitivity of the spot market to derivatives market activity, meaning that instances of liquidation-induced price swings, like those seen on April 26, could become less frequent moving forward. At the time of reporting, Bitcoin is valued at $28,938.



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