Bitcoin has lost 10% of its value in the last week, falling below the $100,000 support level. This decline has created uncertainty in the cryptocurrency market, driving investors into panic. Popular altcoins such as Ethereum and Solana have also been negatively affected by this decline.
Analyst Michael Pizzino issued negative warnings for the market and stated that if Bitcoin falls below the $74,000 level, a major correction could occur. Pizzino stated that a double top formation has formed in the market and that this gives a negative signal. He also emphasized that Bitcoin's departure from the peak it reached in March should not be ignored.
Pizzino noted that the three consecutive days of Ethereum and Solana losses indicate that the market is entering a macroeconomic downtrend. He warned that this trend could drag investors into a long-term bear market. He also noted that a short-term recovery if the market drops below $74,000 could be a precursor to a long-term bear market in 2022. This process could leave investors facing serious losses.
Pizzino advised investors to pay attention to broader macroeconomic trends rather than focusing on short-term market fluctuations. “We have to watch the market carefully and consider the possibility that my analysis could be wrong,” he said, indicating caution.
Pizzino also noted that the probability of a rapid and sharp recovery is low, and that an increase with low market activity could be misleading. The current volatility in the cryptocurrency market requires investors to adopt more careful and flexible strategies. It is critical to focus on the general trends of the market against long-term downtrends.