A widely respected cryptocurrency analyst has warned traders not to count on a significant correction in the altcoin market to rally to lower prices.
In a new video update, cryptocurrency strategist Jason Pizzino tells his 311,000 YouTube subscribers that recent history suggests the looming altcoin crash is an unlikely scenario.
Pizzino says he’s looking at TOTAL3’s monthly chart, which tracks the total market capitalization of cryptocurrency assets excluding Bitcoin (BTC), Ethereum (ETH) and stablecoins. According to traders, TOTAL3 is currently in a consolidation phase in preparation for a surge, which suggests that a serious correction is unlikely in the altcoin market.
Altcoin market capitalization has risen for six consecutive months. Of course, there will eventually be some kind of correction, but if you look at the monthly charts, past corrections have not been broken down on the swing chart.
It’s going to take a similar low to what we saw last month, and then we’re going to need a month, two, three – maybe two or three months – to reaccumulate before we see a move up again after such a strong move.
So if we are seeing something similar to what happened in the previous cycle after this period, it once again emphasizes that it is not possible to wait and expect a bigger decline. It probably comes at least once a cycle. But I don’t think now is the time for that.”
According to Pizzino, the relatively moderate bear market for Ethereum (ETH) suggests that the altcoin is in a strong position and that ETH may be ready to ignite the next phase.
“ETH is on a very similar trajectory. We are moving up to 50% ($2,917 retracement level). It seems like we’re a few dollars away from that right now, and crazy, this decline in Ethereum is only about 28%. We took it from the first bounce off the lows. That is, 47%.
This was the June low and it bottomed much faster than Bitcoin. ETH hit a June low and Bitcoin hit a November low, so ETH performed better in terms of gains at that point.”
Ethereum is trading at $2,925, above Pizzino’s 50% retracement level at the time of this writing.
Don’t miss a beat – subscribe to get email alerts delivered straight to your inbox
Check Price Action
follow us TwitterFacebook, Telegram
Daily Hodl Mix Surfing
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are entirely at your own risk and that you are responsible for any losses that may occur. The Daily Hodl does not recommend the purchase or sale of any cryptocurrency or digital asset, and The Daily Hodl is not investment advice. The Daily Hodl engages in affiliate marketing.
Featured image: Shutterstock/urzine/oneshot1