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Known for his accurate forecasts, crypto analyst Jason Pizzino has warned market participants that Bitcoin (BTC) is showing the same technical patterns that preceded sharp corrections in 2016 and 2019. The analyst expects a significant pullback in the largest cryptocurrency.
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.
Bitcoin Also Faces a “Wyckoff Distribution Pattern” Warning
Pizzino is also closely monitoring Bitcoin’s price movements in lower time frames. According to the analyst, investors are currently in the process of selling their BTCs within the Wyckoff Distribution Pattern. The Wyckoff Distribution Pattern is a significant formation used by investors to identify key peak points.
In his comments on the Wyckoff Distribution Pattern, Pizzino said, “It seems that Bitcoin is currently in the Wyckoff Distribution phase. This typically means that investors are selling. It should also be added that BTC has recently made a candle close below the Gann 50% level.”
