Popular cryptocurrency analyst and trader Jason Pizzino believes the recent market downturn might be ending. Speaking to his YouTube subscribers, Pizzino indicated that the recent drop in the total value of the cryptocurrency market might have reached its lowest point.
Fibonacci and Time Balance May Signal Recovery for Cryptocurrency Market
According to Pizzino, one of the most significant signs that this downturn is ending is the total market value showing recovery after reaching the 50% Fibonacci retracement level on a weekly timeframe. The analyst emphasized that this level is considered a positive indicator for a balanced market as it corresponds to the 50% retracement level, which is accepted as the bull market range.
The analyst also stated that the cyclical movements of the market support this view. He noted that the time taken for the total market value to cycle from the bottom to the peak and then return to the 50% Fibonacci retracement level is almost equal.
Pizzino observed that after a 21 to 26-week upward movement, there was a 21-week decline, indicating that the market is moving in a balanced manner.
Another Recovery Signal in the Cryptocurrency Market
According to Pizzino’s analysis, the Crypto Fear and Greed Index and volume indicators also signal this recovery. The Crypto Fear and Greed Index is a tool that measures the levels of fear or greed in the market, with extreme fear indicating oversold conditions and extreme greed indicating overbought conditions. The analyst noted that the index reached extreme fear levels and then experienced a sharp recovery with very strong volume.
The analyst argued that the combination of these signals suggests that the cryptocurrency market is at a critical stage and that the downtrend is likely coming to an end. Pizzino highlighted that the recent correction might be complete with the convergence of these signs.
