“This Whole Rally could be a Huge Fake Out,” Crypto Analyst Predicting a “Severe” BTC Price Correction
- Bitcoin pullbacks to $6,170 level
- An absolute low closer to October can occur, crypto analyst
These last few days have been all about bulls as the leading cryptocurrency went to $8,000 level, for the first time in 10 months. However, today we saw a deep correction in the market that took BTC/USD to $6,178 level. After surging more than 57 percent in May, a retreat like this is only healthy for the market.
Experts believe this would be the last time we will get to see BTC on these kinds of low. The yearly low seen in December 2018 at $3,150 has been declared as the bottom of this market. In the wake of the May rally, experts believe the lowest we could see now would be about as low as $5k.
However, there is one analyst who believes for those who thinks they have missed the train to the moon, will get the opportunity soon as:
“this whole rally could be a huge fake out, instead of a real start to the bull market.”
In his latest analysis, Magic Poop Cannon shares how both in 2011 and 2013 Money Flow Index (MFI) spikes above 96.5 percent in correlation to a sell signal on the network value transactions (NVT) that combined to call the top of the move only to enter into a 75 percent correction. This move repeated twice and wasn’t seen until today, says Magic.
According to him, this rally doesn’t make sense as per technical view due to the reason that Bitcoin blasted through an “enormous resistance” at $6k. Additionally, he says, the bottom of the rising arch hasn't been touched by Bitcoin which “isn't something that HAS to happen” but has held for its entire existence.
Talking about the liner cyclicality the leading cryptocurrency follows, it suggests that we should “see an absolute low closer to October.” The reason for the same Magic says is that market cycles are increasing over time and for BTC to just enter a bull market here violates that rule.
Why the Deviation from Pattern?
So, what about the current rally that we actually see taking BTC from about $5,300 to $8,300?
Magic says this deviation from the technical pattern could have been forced by the massive influx of institutional investors, high frequency trading, futures, quant trading desks, and other new things entering the space.
A severe pullback here is imminent, according to him. However, currently, we have corrected only 10 percent, while Magic says, for Bitcoin to reach the bottom of the blue arch, there would be a near 70 percent fall.
“Everyone is extremely bullish, filled with greed, irrationally exuberant, and those are all bad signs. Those are the reasons why I don't trust the notion that the bull market is beginning.”
If Bitcoin holds support at $6,000 level after correction, that would be another picture but for right now, indicator and sell signals tell a different story, Magic said.
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Bitcoin’s price is $58,224.86 BTC/USD exchange rate today. The real-time BTC market cap of $1.09 Trillion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $24.47 Billion and live coin value change of BTC 4.59 in the last 24 hours.
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