Top Crypto Analyst Pizzino Says the Market is ‘Overreacting’ on Binance News – Updates Outlook for Solana, Chainlink and These 2 Altcoins
The crypto market is in a state of uncertainty following recent negative news concerning top exchange Binance and a major decline in the price of Bitcoin. Prominent crypto analyst Jason Pizzino provides an insightful review of these developments and shares his predictions on what may come next.
Pizzino begins by addressing Binance’s current legal issues that have emerged, leading to a lawsuit from US regulators and CEO Changpeng Zhao stepping down. However, he notes that while this news initially caused panic selling, its longer-term impact may be exaggerated: “The news of the US Regulators suing top crypto exchange Binance… we do know that CZ is also stepping down… what I’m having a go at is, of course, news headlines and the overreaction from the market itself.”
Delving into a data-driven analysis of market performance since this news broke, Pizzino highlights that cryptos have seen around a 35% upside. But he believes there could be more losses ahead, asking, “is there more downside for cryptos and for Binance?”
To predict potential movements, Pizzino studies historical patterns and cycles. He points out Binance coin’s tendencies to have extended periods of gains and declines: “We were looking at multi-year moves, multi-year cycles for Binance… 21 months up, 21 months down, 22 months up… sometimes it can be this simple.”
Pizzino cautions against using news headlines as the basis for trading decisions. As he puts it, “All we do here is study the past to forecast the future… let’s not use [news articles] as part of our trading analysis.”
Beyond Binance, the video analyzes broader altcoin and Bitcoin trends
Pizzino explains that historically, “altcoin mania has picked up almost dead on those lows… Binance coin went ballistic there.” This indicates that the current decline could foreshadow a future rally once the markets bottom out.
He also cautions about getting swept up in hype and rumors, noting “If you understand that someone who goes quiet for 4 months and then all of a sudden starts popping up making these ridiculous claims… they know when the excitement is in the market.” This demonstrates how influential figures time major announcements to profit from market mania.
In terms of investment strategy, Pizzino advises, “Buy the cryptos that look the strongest, buy the cryptos that are having that pullback that have already looked strong and are giving you that pullback opportunity.” Essentially, he recommends focusing on technically sound coins rather than reacting to market volatility.
As for Bitcoin, Pizzino asserts that while negative developments can accelerate declines, they are rarely the underlying cause: “The Binance news isn’t the cause of the correction, it’s the catalyst… it’s very, very surprising for most.”
He further advises avoiding cryptocurrencies that are breaking key support levels, stating, “What I wouldn’t buy is a crypto that continues to break down under the 50% level and continue to break down underneath key support levels.” This indicates weakness and likely further losses.
Pizzino suggests that this turbulent period for crypto will separate viable projects from failing ones: “This is the period now that exposes the junk and exposes the stuff that has significant potential to do well in the next cycle.” By remaining analytical and strategic, investors can capitalize on the eventual rebound.
Altcoin Analysis: Key Coins to Watch
In his altcoin analysis, Pizzino zooms in on the price action and market movements of selected cryptocurrencies to predict their potential future trajectories.
One altcoin highlighted is Solana (SOL), with Pizzino noting its adherence to the crucial 50% retracement level even amidst the wider market decline. This key chart indicator suggests SOL could be primed for further growth.
Additionally, Chainlink (LINK) is analyzed in relation to its Bitcoin pairing. As Pizzino explains, LINK has held up reasonably well when compared to Bitcoin, signaling underlying strength.
Injective Protocol (INJ) offers a contrasting example, having reached new all-time highs against Bitcoin earlier before taking a sharp turn downwards as sentiment shifted. This reflects the swift changeability of altcoin valuations.
Finally, Pizzino references THORChain (RUNE), commenting on its price movements correlating with specific social media announcements, underscoring how influencer tweets can precipitate immediate selling pressure.
By evaluating real-use cases and on-chain activity, Pizzino ultimately determines the investment merit of these and other altcoins. As he sums up, “This is the period now that exposes the junk and exposes the stuff that has significant potential to do well in the next cycle.”
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