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A popular crypto analyst is drawing attention to potential parallels between Bitcoin's present technical signals and those witnessed before notable corrections in 2016 and 2019. Jason Pizzino points out that faced resistance at the Gann 50% retracement level following a close below $42,230 last week. Gann Indicators, used by traders to pinpoint essential support and resistance levels and forecast market movements, revealed a significant development. Pizzino highlights: Reflecting on historical events, Pizzino recalls Bitcoin’s encounter with the Gann 50% retracement level in 2016 and 2019 post its initial upward trajectory. In December, he shared a chart implying a potential correction based on the same technical indicator, prompting the inquiry, “Is Bitcoin history repeating itself?” Analyzing Pizzino’s chart indicates a roughly 70% pullback in 2019 after Bitcoin ascended to its Gann 50% retracement level. Additionally, Pizzino closely scrutinizes Bitcoin’s shorter time frame price actions, noting a trend of coin sell-offs by BTC holders aligning with a Wyckoff Distribution Schematic—a pattern employed by traders to discern significant market tops. Pizzino underscores this observation, stating, “Bitcoin seems to be in the Wyckoff Distribution stage, indicating a phase where investors are divesting from crypto. The recent closure below the Gann 50% level adds another layer of concern to the analysis.”
Read more: coinspress
