Mi. Jul 24th, 2024

• Crypto analyst Jason Pizzino warns that Bitcoin is unlikely to reach new highs despite a recent price increase.
• Pizzino believes that Bitcoin must break past key levels, such as $28,500 and the 50% Fibonacci retracement level, for short-term strength to enter the market.
• The current rally may just be a temporary surge facing diagonal resistance.

Bitcoin Struggles To Reach New Highs

Crypto analyst Jason Pizzino recently warned investors of potential downside risks for Bitcoin, despite its recent 5% price increase from the April low. Despite this slight recovery, Pizzino believes that Bitcoin has not yet broken past crucial levels such as $28,500 and the 50% Fibonacci retracement level at $29,337 which are necessary for short-term strength in the market. He also notes that this current rally may just be a temporary surge facing diagonal resistance.

Potential Downtrend Continuation

Pizzino suggests that if these key levels remain unbroken then it is likely that Bitcoin will experience a downward retracement continuing the downtrend which followed its 100% five month rally last year. If this turns out to be true then he believes investors should watch out for key price levels at $26,500, $25,300 and around $23,900 at the $24000 mark.

Declining Leverage Ratio Signals Low Volatility

In addition to its struggle to break through these key levels mentioned above there are further indicators of low volatility in BTC’s market with a declining leverage ratio seen on BitMEX’s perpetual swap contract which currently stands at 0.58x compared to 1x during February when prices were rallying strongly before hitting their all time high of over $42000 in mid-April 2021.

Analysts Remain Optimistic

Despite these signs of low volatility some analysts remain optimistic about BTC’s prospects with trader Michaël van de Poppe noting on Twitter “The best thing we can do right now is patiently wait until new developments arise & don’t get overly bearish or overly bullish as markets tend to surprise us more often than not” suggesting that if any new developments arise soon then this could result in an unexpected surge back up again in prices regardless of current indicators pointing towards further dips in value rather than increases..

Conclusion

All things considered it is difficult to make accurate predictions about what will happen next with Bitcoin but what remains clear is that it still faces many hurdles before it can reach new highs again so investors should take caution when investing their capital into cryptocurrency markets especially during times of extreme volatility like we have seen recently with BTC and many other digital assets throughout 2021 thus far

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