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Bitcoin could see 15 to 20% decline next week
An analyst with the nickname "Magic Poop Cannon" recently warned investors that Bitcoin (BTC) could experience a significant decline in the coming weeks. In an analysis published in Trading View, Magic said BTC's takeover from $ 3,400 in January to $ 5,450 last week "was half of a huge doji pattern in the evening," adding that the movement was in "manual training".
For those who missed the memo, an evening star is an inversion pattern, characterized by a strong upward trend (observed last week), stagnation (this week) and a reversal. A doji candle is a candle whose opening and closing prices are in fact the same, which indicates indecision in a market.
If this pattern of "evening evening" unfolds as planned by Magic, Bitcoin could experience a drop of 15% to 20%, reaching $ 4,100 over the next ten days, then an even larger sale, potentially of Order of $ 3,000, to finish this sale. training.
Magic's bearish sentiment was reinforced by the fact that while Bitcoin exceeded its 200-day and 200-week moving averages, it was rejected at the 50-week moving average, which is arguably more important, pointing out that BTC is not yet completely free.
This is not the first time that Magic claims that Bitcoin merchants should be cautious in the coming days. As previously reported by Ethereum World News, while the Bitcoin rally in early April, which had yielded $ 4,200 and its 200-day moving average, was bullish, BTC failed to outperform a "huge uptrend channel". This line was rejected in the form of a massive and rapid sale of Bitcoin. Magic says BTC may fall to the bottom of its channel, currently at around $ 4,300.
This seems bearish, especially as the BTC would reach $ 4,300 from current levels, which would represent a drop of 17%, but Magic says the technicalities suggest it's not going to come down. acts neither of sun nor of rainbows. More specifically, the divergence of convergence of the moving average (MACD) is, according to the trader, "about to create a bearish cross. The Relative Strength Index (RSI) also shows signs of further decline.
Always bullish … in the long run anyway
Of course, Magic seems to be wary of the possible return to $ 4000 and even lower, but we allow ourselves not to reveal that the analyst remains optimistic about Bitcoin in the long run. As he explains in an upbeat tweet published before the aforementioned analysis, Magic writes that he expects BTC to reach a peak of about $ 150,000 in years to come, even $ 500,000 in the 2030s.
The seemingly tasteless sentiment of Magic's market brings out a good point: Bitcoin could easily review its lows, maybe even drop below $ 3,000 and still have a bright future ahead of it. In fact, one could argue that a new collapse could be healthier for the industry, in that it would eliminate scammers and other stakeholders attempting to exploit crypto before the apparently apparent rebound. .
Photo by Sharon McCutcheon on Unsplash
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