Analyst: Bitcoin (BTC) Most Likely To Bottom At $2,400
Bitcoin Could See A Further 40% Before Bottom, Claims Trader
The seemingly endless stream of harrowing crypto price predictions has continued. One trader, going by the laugh-inducing moniker “Magic Poop Cannon,” claims that Bitcoin (BTC) is most likely to find a long-term floor at and around the $2,000 (most likely $2,300-$2,400) price level — a further 40% decline from current prices.
Per his analysis, released to his feed on technical analysis hub TradingView, the “ideal bottom scenario” will play out in the low 2,000s, likely by the start of March/April. And here’s why — according to Magic anyway.
Utilizing fractals, or the art of drawing parallels and lines between previous events to those at current, Magic explained that there’s been a pattern forming between the end of the 2014/2015 bear season, the most recent, and Q4 2018/Q1 2019’s action.
The analyst noted that when BTC bottomed in early-2015 at ~$170, it proceeded to enter a triangle and head and shoulders pattern, which was underscored by the 200-week moving average and the 50-day exponential moving average. In that case, Bitcoin held within the triangle and didn’t breakdown, effectively ending that bear market. In fact, the bottom of 2015’s triangle and the 200-week MA acted as support, allowing Bitcoin to consolidate in the months that folded. So what does that mean for today’s crypto market?
Well, when BTC hit $3,150 in mid-December, it proceeded to enter the aforementioned triangle and head and shoulders pattern, again held together by two notable moving averages. Yet, unlikely its counterpart that was seen four years ago, Bitcoin fell through the triangle in late-January, meaning that the asset is currently looking to test its 200-week MA in the $3,200 range.
While that level is of utmost importance for the cryptocurrency, leading some optimists to claim that this level would hold, Magic went on to claim that a number of factors indicate that BTC won’t see any long-term bottoming capability at the 200-week MA. The following are a portion of his reasoning as to why $2,000 – $2,400 is possible:
The deviation from the aforementioned fractal, coupled with consecutive lower highs and lower lows on the one-day chart.
Bitcoin can’t break above the 50 EMA.
An uptrend arch in BTC’s logarithmic chart could be broken.
Bearish, Bearish, Bearish
This recent call comes after he took to TradingView to issue a slightly crazy and out-of-this-world prediction. According to previous reports from this very outlet, he claimed that according to historical patterns, whereas Litecoin (LTC) rallies to the top of its channel, falls linearly, sees a slight recovery, peaks twice, and continues lower, the same is likely playing out at this very moment.
So, he remarked that if this trend finished in full, LTC could fall to as low as $6. He applied this logic to Bitcoin’s chart, explaining that Bitcoin could fall to $1,100. Unlike his more serious $2,400 call, this one was seemingly made in a bit of jest.
While Magic’s low-$2,000 call seems foreboding in and of itself. Some have been even more bearish for crypto’s short-term prospects. The Crypto Dog stated earlier this week that he wouldn’t be surprised if a $1,800 BTC and $50 Ethereum (ETH) became reality.
Backing this call, the analyst went on to cite one of his quips from late-December, in which he stated that as the cryptocurrency ecosystem is presumably nearing the end of its downturn, it may range trade between an absolute low and high of $1,800 and $6,200 respectively for a “substantial period of time.”
Featured Image Courtesy of Glenn Carstens Peters From Unsplash