Bitcoin (BTC) Looks to Be Exhausted and is in Serious Need of a Pullback

Bitcoin has found a new range to get stuck into. After jumping above $5k in early April, the flagship cryptocurrency has been trading between $5k to $5,400 range. Currently, BTC/USD is trading at $5,306 in green.

According to crypto analyst Flood, $4,900 to $5,150 is the range to buy more Bitcoin in. While Cow Jones, a crypto trader shares the historical RSI action that could signal a bull run.

Meanwhile, in his latest analysis, the self-proclaimed, master of charts, crypto analyst, Magic Poop Cannon talks about Bitcoin being exhausted.

Reiterating his previous posts where he called out the moves regarding the panic sell-off at $5,600, the breakdown from the $6k, exact bottom for Cardano among many other coins and markets, Magic reinstates why people need to follow him.

Explaining in detail about the 2015’s breakout above the 200 EMA and current breakout above 200 EMA, Magic points out that in the previous cycle after the last bear market bottomed, the price rallied above the 50 MA, from where BTC produced a sharp rally until it was stopped in its tracks at the weekly 50 EMA.

When that move was made, there are few key things that happened at that time viz. peak of the move occurred exactly as the golden cross was occurring, the price fell below major moving averages and the retraced move was stabilized on 61.8% retrace, the RSI reached slightly above 80 and price hadn’t tested weekly 50 EMA for 241 days.

The current situation Magic says is looking “incredibly” similar. From here, he shares the highest probability is to the downside as the daily RSI has reached well over 80, the weekly Stochastic RSI has been pegged at 100 for some time now and for about three weeks NVT is flashing a red signal.

He further believes NVT doesn't need to be recalibrated due to increase in network transactions among other factors because the signal has been accurate thus far and no reason to believe it isn’t accurate now.

“I see limited upside (if any remains) and a whole lot of downside. So, I am short term bearish (although not shorting) and long term bullish.”

Though we can see a bit more upside, we aren't going to break the major resistance at $6k as it will take months to break above it. Magic says we will retrace to just above $4k as the market is exhausted and in need of a pullback.

However, in the long term, the $1 million call for BTC is gaining momentum as Chris Burniske, a venture capitalist becomes the latest one to tweet the likelihood of BTC hitting $1 million.

“Looking at the top 10 crypto assets at the end of each year makes me think bitcoin (blue) gets to $1 trillion on its own in the next bull market,” he stated.

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