Benzinga - Renowned crypto analyst Jason Pizzino sounded the alarm for altcoin investors, indicating a potential downturn in Bitcoin's (CRYPTO: BTC) value could spell disaster for the broader cryptocurrency market.
Pizzino on his YouTube channel noted, “So, it looks like [Bitcoin is] coming back to test [$26,700] now. You guys know if we get a breakdown of that, we’re probably going to come back to test $26,000, potentially even test $24,900.”
He continued to underscore the importance of Bitcoin's pivotal position, hinting at the possibility of it retesting the monthly 50% level at $23,600.
Such a scenario, Pizzino warned, will "guaranteed, have dire consequences on altcoins."
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This cautionary stance on the future of altcoins and Bitcoin's role as the market bellwether aligns with the broader discussions on digital assets' future. These pressing topics and more will be covered at Benzinga's Future of Digital Assets conference on Nov. 14, where experts will gather to dissect the latest trends and challenges facing the cryptocurrency world.
While Ethereum (CRYPTO: ETH) remained a separate concern, Pizzino highlighted its struggling state amidst the current market volatility.
He elaborated on the potential ripple effect in the altcoin market if Bitcoin breached its $26,700 support: “But if Bitcoin does come back and break this 50%, $26,700, you’re going to see altcoins continue to struggle as well."
Pizzino further elaborated on the cascading impact, suggesting that once Bitcoin hits the $25,000 mark, altcoins might see even steeper declines.
"Because these are some of those key levels in the market that participants look for, maybe their algorithms. But when those start to break, then there’s a flight to safety… push it back into BTC or even into stablecoins, which is possibly why Bitcoin still drops but doesn’t drop as hard as the altcoins will drop.”
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