Analyst says Bitcoin to See a “Nasty Pullback” Before Enterting the Next Bull Market by End of 2019
After falling to $4,925 on April 12th, Bitcoin remained stable at around $5k around the weekend. Today, it started rising yet again as it reached $5,192. At the time of writing, BTC USD has been trading at $5,163 on Bitstamp as per TradingView with 24-hours gains of about 2 percent.
Now, according to the latest analysis of crypto analyst and trader Magic Poop Cannon,
“Bitcoin is Setting Up For A Potentially Nasty Pullback.”
Pointing at the daily chart, he says the price is clearly in a large uptrend channel that has two reactions on the top trendline and two reactions on the bottom trendline. Given the fact that the midline of the channel has been reactive in the past as well, we are in the uptrend channel.
What’s interesting is, we just recently rejected at the top of the channel that could potentially mean we could fall directly to the bottom of the channel. But going down, we have several significant support levels on the way.
These support levels are the 200 EMA and the 50 EMA and the middle of the channel with other moving averages passing through the channel as well. Now, he says the interesting thing about these moving averages is 200 and 50 EMA appears to be setting up for a golden cross.
“If we do happen to get a golden cross, in the next few weeks, that will be a HUGE indication that the bear market is complete, and that we are in a transition phase into the next bull market.”
Magic says though there hasn’t been a technical confirmation, he believes we are in the transition phase and later this year we would be in the beginning stages of the next bull market.
Though the chart shows a downward arrow to above $4k level, this is just a “crude representation” of what he believes the price could do but it is a maximum downside scenario.
Talking about other facets, he notes that MACD has just now starting to cross over bearish and after being severely overbought, RSI has dipped back into the neutral zone.
In the short term, he concludes that we are about to see the price return to the $4k region, with the possibility to see $4,300 that would be near the bottom of the uptrend channel. He is sure that after making contact with the top of the uptrend channel, Bitcoin will be pulling back.
Live Bitcoin (BTC) Price:
1 BTC/USD =$27,661.5574 change ~ -0.01%