A popular crypto strategist is mapping out where Bitcoin (BTC) and the rest of the crypto markets may bottom out in a worst case scenario.
In a new strategy session, Jason Pizzino tells his 276.00 YouTube subscribers that it is within the realm of possibility for the total market capitalization of crypto assets to lose another 40% of its value even after this year’s deep correction.
“So for the realistic zone probably somewhere around an 80% – 82% drop brings us down to about $550 billion, and if we’re looking for anything in the middle, sure you can take your $600 or $700 billion. Currently, we’re down 74% to the [June] low of $762 billion.
So for a drop from where we currently are back to the low of [$762] trillion, that’s about a 14% drop for the total cryptocurrency market cap. That can be quite significant. Maybe you’re going to see 10% off Bitcoin, 20% off ETH and throw another several percent on the rest of the market… That’s very realistic.
Somewhere to the bottom of that range ($550 billion) is about a 40% drop from where we currently are.”
At time of writing, the total crypto market cap stands at about $887 billion.
As for Bitcoin, Pizzino says a drop of a similar magnitude would drive BTC down to levels last seen in July 2020.
“Would it even be possible for Bitcoin to drop 40%? From the current price to significant support levels at about $11,000 – $11,500, which is our bottom of the cycle buy zone, that’s your 40% drop… So it is within a realistic view.”
Looking at Ethereum (ETH) challenger Cardano, Pizzino says that an even deeper correction is conceivable for ADA considering that the smart contract platform almost lost all of its value during the 2018 bear market.
In a worst-case scenario, the analyst sees ADA plummeting all the way down to $0.17.
“Previous cycle for ADA, it’s been down 98%, so it’s not really unrealistic to think that this could go even further to my downside target, maybe 94% – 95% down from the top, which is still less than the previous cycle. ”
At time of writing, Cardano is swapping hands for $0.39.
The trader also has his eye on Solana (FLOOR), which he says could plunge below $20 if the crypto markets lose 40% of its value. Pizzino also says it’s possible for Solana to follow the footsteps of Cardano and wipe out about 60% of its market capitalization, taking SOL to as low as $12.
At time of writing, SOL is trading at $30.88.
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