As Bitcoin $94,761 continues its upward trend, prominent market expert Jason Pizzino has issued significant warnings to investors. He noted that the profits seen in previous bull cycles might be more constrained this time. In a video update, Pizzino shared his technical analysis concerning market cycles and price movements, highlighting that the market may be entering a period where price surges could slow down. He emphasized that the risks are increasing, particularly for investors entering the market late, and profit margins are narrowing.
Profits Narrowing as the Uptrend Continues
According to Pizzino, if a third significant surge follows Bitcoin’s previous two major jumps, new record levels could emerge. However, he added that this potential might not yield the same strong returns as before. Particularly after experiencing a surge from $15,000 to $74,000, which provided approximately $58,000 in profit, he suggested that the potential target for a similar increase could be around $130,000.
Nonetheless, the expert pointed out that Bitcoin’s growing market capitalization is beginning to limit its return potential. “Investors could previously achieve hundreds of times their investment. Today, replicating that success is much more challenging,” Pizzino advised, encouraging investors to adopt more cautious positions. He noted that increased capital influx has also significantly heightened market competition and volatility.
“Early Investors Profited, Latecomers Must Proceed with Caution”
Another key point highlighted by Pizzino is the importance of timing. He stated that those who invested early in past cycles benefited greatly, but similar opportunities are now diminishing. As Bitcoin reaches a broader investor base, the price movements have become less aggressive, resulting in reduced profit margins.
For new market entrants, the expectation of price increases remains valid. However, these expectations may not promise the substantial gains seen in the past. Therefore, Pizzino stressed that investment strategies should be based on more realistic foundations and emphasized the significance of risk management. He cautioned that abrupt market reversals in the cryptocurrency space could lead to severe losses for investors who act without a plan.