Jason Pizzino: “Don’t count on a major correction for altcoins”

According to popular analyst Jason Pizzino, we should not expect a correction for altcoins at the moment. According to Pizzino, recent history means that an altcoin crash is not very likely.

He mainly looks at the monthly chart of TOTAL3, an index that tracks the market cap of all coins, minus bitcoin, ethereum and stabllecoins.

TOTAL3 in consolidation

Jason Pizzino states that TOTAL3 is currently in a phase of consolidation, in preparation for a price explosion. For that reason, he believes, the chance of a crash in the altcoin market is small.

“The market cap for altcoins has now risen for the sixth month in a row. Of course there will be corrections eventually, but if we look at the monthly chart, the past corrections did not cause massive crashes,” said Pizzino.

Based on the past, the analyst claims that the chance of a future crash of altcoins is reasonably small, because the “lows” managed to act as a support point.

“We are now in the middle of something similar to what we saw in the past. To me, that reinforces the idea that waiting for bigger setbacks is not smart. There will be at least one during the cycle, but this doesn’t seem like the time yet,” says Pizzino.

Altcoins are in good shape

According to Pizzino, Ethereum’s relatively tame bear market indicates that altcoins are in a strong position. According to the analyst, Ethereum could be preparing for the next major upward price movement.

“ETH also shows a very similar trajectory. We are now rising towards the 50% Fibonacci level ($2,917). It looks like we are a few dollars away from that and ethereum pullbacks have been limited to 28 percent,” Pizzino said.

According to the analyst, it is striking that Ethereum managed to find its bottom much earlier than Bitcoin. “We had a low for ethereum in June, while bitcoin only bottomed in November. In that respect, Ethereum had a better run,” he concludes his story.