Analyst and trader Jason Pizzino assesses the possibility of the cryptocurrency market seeing further decline.
In a new video, Pizzino tells his 332,000 YouTube subscribers that there are “very good signs that we may have seen a bottom” in the downward trend that the total cryptocurrency market cap has seen over the past two weeks.
According to Pizzino, one of the signs is that the recent downward trend in the total cryptocurrency market capitalization has reversed after reaching the 50% retracement level on the weekly time frame.
“You can see that this bounce has fallen to 50% of the bull market range. So that’s exactly what you want to see for a balanced market.”
The crypto analyst also claims that the number of weeks it takes for the total cryptocurrency market cap to move from the cycle bottom to the cycle top and back to the 50% retracement level is almost similar.
“In terms of timing as well… we get a similar balance in time here – we had an upward trend of about 21 to 26 weeks. And we just finished a downward trend of 21 weeks.
So it’s nice to see some time balancing and on top of that it’s gotten above the 50% level.
Pizzino adds that the Crypto Fear and Greed Index and volume indicators further reinforce his belief that the cryptocurrency market correction is potentially over. The Crypto Fear and Greed Index is a tool that measures the levels of fear or greed in the market with an extreme fear reading indicating oversold conditions and an extreme greed reading suggesting overbought conditions.
“So a lot of these signals come together at a good time in the market. You see extreme fear, then a strong bounce on very high volume.”
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