bitcoin Could Soon See Pullback
While () just recently broke past $5,400, some analysts are sure that the market isn’t ready to move higher just yet. In a , Magic Poop Cannon, suggested that is “exhausted” and is ready to see a large 15% to 20% pullback if historical trends hold any value.
Magic explained that ’s current price action, 50-week exponential moving average, 50- and 200-day simple moving averages, Fibonacci retracement levels, and Relative Strength Index (RSI) are all looking eerily similar in structure to that seen in mid-July 2015. For those not versed in ’s historical market cycles, mid-July 2015 is when rallied after a capitulation event, but then subsequently fell near its lows as a breakout failed.
Thus, Magic concluded that if is to follow historical precedent, its 50-day and 200-day simple moving averages will form a by the end of April, trade from $5,000 to $5,300 until May 7th, and will then collapse to its 0.618 Fibonacci retracement, which currently sits at $4,025. He adds that those who believe that will , which tested for months before breaking under, are “delusional,” meaning that upside is currently dramatically limited.
Magic’s other recent analyses would confirm that isn’t doing as hot as some optimists think it is. In response to a hubbub that ’s one-week chart looks exactly like a “,” or BARR bottom for short, the short-term bear that as the Stochastic RSI is “pegged to 100,” while the traditional RSI reading is still leaning overbought and the MACD is “showing signs of exhaustion,” a bearish reversal from here is possible. In another analysis, he that if finishes an “evening star Doji” pattern, will see a 15% to 20% drop to $4,100 in the coming days, and then could sell-off even further.
Magic isn’t alone is his reasoning that if ’s current cycle plays out how trended in 2015, a strong move to the upside isn’t on the horizon. In a recent chart, an analyst going by Joe explained that took a jaw-dropping 105 days to rally past its 50-week exponential moving average. As now has yet to break past this level, which often signifies resistance in bear markets and support in bull runs, Joe proposes that could be trapped by the mentioned moving average for 105 days, meaning that the market could experience a multi-month slow drawdown prior to a “possible trend reversal and bull run.”
Joe and Magic aren’t the only two that have proposed that aren’t ready to be catapulted into a bullish state right now. As Jacob Canfield he has seen a trend line develop since late-2015, which supported during four drawdowns in the 2016 to 2017 run-up. However, during this bear market, that former key support level has turned into heavy resistance. Earlier this year, tried to pass $4,400, but was rejected off that trendline, and last week, tried its hand at pushing past $5,500. This move, as you know, failed miserably, with the asset seeing an immediate 10% pullback to $4,950 as a result of the rejection.
Canfield suggested that as such, will need to break and hold above $5,800 to confirm that the bear trend is over.
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Published at Mon, 22 Apr 2019 23:10:06 +0000
