Bitcoin’s price has seen tremendous bullish momentum since its launch approval and launch of Spot Bitcoin ETFs. However, one crypto analyst, Jason Pizzino, predicts a temporary halt in the growth trajectory, citing Bitcoin’s proximity to a crucial resistance point that could result in a significant price drop.
Analyst Forecasts Bitcoin Price Correction
In a recent one Youtube video published on Friday, January 12, Pizzino shared his insights into the movement Bitcoin market conditions, the world’s largest cryptocurrency. According to the analyst, the the price of the best cryptocurrency expected to fall 20% to 22% and reach possible support levels of $37,000 to $39,000 before Bitcoin’s halving.
The halve expected to take place in April 2024, is an event that would see Bitcoin mining rewards cut by half to reduce the number of new coins entering the market. This reduction effectively reduces cryptocurrencies total offer and supposedly increases its value through scarcity.
Pizzino backed up his predictions by pointing out that BTC is currently trading at a key resistance level in the bull market, which could result in a significant price correction. He acknowledged the excitement surrounding it Discover Bitcoin ETFs has successfully pushed the cryptocurrency to its recent highs. However, the crypto analyst also highlighted the possibility of complacency after the current hype, which could lead to a major hype price correction.
Bitcoin slides back into the $42K territory. Chart: TradingView.com
Although the crypto has seen an impressive uptrend in recent months, Pizzino emphasized the importance of understanding historical price patterns and market behavior. He emphasized the importance of being prepared for any possible correction or retracement in Bitcoin’s price.
BTC dips below $42,000
Following the official approval of Spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC), the price of Bitcoin has skyrocketed. The cryptocurrency rose to $49,000 on Thursday, January 11, after Spot Bitcoin ETFs launched and investors officially started trading.
However, Bitcoin’s price recently saw a massive drop following news of Forefront restricting its clients from trading Spot Bitcoin ETFs on its platform spread. As a result, the cryptocurrency experienced a price drop below $42,000, and more than $7,000 lower than the 2024 peak of $49,000.
Currently, the coin has made back some of its lost gains and at the time of writing, its current trading price is $43,158.52 according to CoinMarketCap. While the dip is seen as a temporary setback for the crypto market, it is also seen as an opportunity to enter the market at a more affordable price point.
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