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Cryptocurrency analyst and trader Jason Pizzino is offering his thoughts on the potential trajectory for the digital asset market going forward.
Pizzino tells his 328,000 YouTube subscribers that the Average True Range indicator is suggesting that “another significant move” is imminent for Bitcoin (BTC) and other crypto assets.
The ATR is used to measure the volatility of an asset with higher values indicating higher volatility and lower values indicating lower volatility.
According to Pizzino, Bitcoin recently witnessed a relatively small range and this could portend a bullish move ahead.
“Basically, we’ve seen one of the smallest days since January. So Bitcoin did a $500 range day on the weekend on Saturday… typically when this happens, you see some sort of windup period… you can see in each of these occasions you will see a pretty significant move to the upside.”
The widely followed analyst says that Bitcoin is “still looking relatively good” and is well-placed for the “next leg to start”. According to Pizzino, Bitcoin needs to first undergo a consolidation phase before it can rise above the all-time high of $73,800 reached on March 14th.
“Does not mean that we’re going to blow up in a matter of days or weeks. But I think we could still take a bit of time here. Bitcoin’s price has got to consolidate above $72,000.”
Bitcoin is trading at $70,984 at time of writing.
Turning to altcoins, Pizzino says that the combined market cap of this class of crypto assets is currently in a phase similar to other periods that preceded a breakout.
“I see this as a stealth move for the altcoins. And the stronger ones are going to get the gains when this breaks out. So the theory here is we’re in stealth – the stealth is identified here with small average true ranges of the bars.”
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