By Tom Blitzer
Key Insight:
- Crypto trader Jason Pizzino predicts a short-term downturn in altcoins before the market can transition into the next bull run.
- Pizzino anticipates another corrective pullback to balance out excessive greed in the market sentiment.
- A breach of the USDX’s critical support level could increase BTC’s price and other alternative cryptocurrencies in the medium-to-long term.
Jason Pizzino, a well-known crypto trader, and analyst, provided his latest technical Bitcoin (BTC) analysis on his YouTube channel earlier today. According to his most recent video, cryptocurrencies are now through a transitory decline, which he refers to as a “short-term bloodbath.” Nonetheless, he feels this is a critical stage before the market enters the next consolidation phase.
Pizzino predicts pullback to stabilize crypto
The trader pointed out that the crypto fear and greed index had attempted to break over a critical resistance level of about 80. As a result, the technical gauge has witnessed a modest dip. Pizzino predicts that another corrective downturn will occur to balance out the market attitude, which is now excessively greedy.
Pizzino evaluated the US Dollar Index in his research and noted that it is now near a significant support level of 100.2. A drop in the dollar value favors the crypto market as a whole. If this support line is broken, Pizzino predicts BTC’s price will likely climb in the medium-to-long term, and other alternative cryptocurrencies will follow suit soon.
The crypto market sees minor fluctuations
At the time of writing, CoinMarketCap statistics showed that BTC was trading at $27,606.34, a 0.08% fall in the previous 24 hours. Meanwhile, the US Dollar Index gained 0.25% over the same period.
Based on technical analysis of the US Dollar Index daily chart, it was determined that the index was in a negative trend in the medium term, as the 9-day EMA line was lower than the 20-day EMA line. Nonetheless, the daily RSI line exceeded the daily RSI SMA line in the previous 48 hours, indicating a short-term positive indication.
According to technical analysis based on the RSI indicator, BTC’s value may show a downward trend in the next 24-48 hours. However, it is essential to note that the USDX is reaching a critical support level. This might negatively influence the price of Bitcoin, causing it to rise and reach $28,700 in the following days.