Analyst Warns of Potential Sharp Decline in Bitcoin Mirroring 2016 and 2019 Corrections
Bitcoin Could Face a Sharp Decline Similar to 2016 and 2019
Experienced crypto analyst Jason Pizzino stated on his personal account on social media platform X that after BTC closed last week below $42,230, it remained under the Gann 50% retracement level, which acts as resistance. It is well known that investors use the Gann indicator not only to identify key support and resistance levels but also to predict market tops and bottoms.
Using this indicator in his analysis, Pizzino noted, “There was a high-volume weekly candle close below the 50% level of the Gann indicator. Bitcoin has fallen 15% from its recent peak. The next major downward target is the next Gann 50% level at $37,000. After all those exaggerated forecasts, downward targets no longer seem so far away.”
The analyst had previously highlighted that Bitcoin saw the Gann 50% correction level as resistance after its initial move from the bottom levels in 2016 and 2019. In December 2023, he shared a chart suggesting that BTC might correct after reaching the same technical indicator’s resistance level, adding the note “Will history repeat itself in Bitcoin?”
Looking at the Bitcoin chart shared by Pizzino, it can be seen that BTC retracted by approximately 70% after rising to the Gann 50% correction level in 2019.
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