MagicPoopCannon

BITCOIN Makes An ABCDEFG 123 HIJKLMNOP Wave (BTC)

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
"Magic sucks at TA! Can't he see that it's an 87 wave 123, ABCDEFG correction, with a nick-nack patty wack?" LOL Wait a minute, wait a minute. I have another one. How about "Yeah Magic doesn't know what he's talking about. I'm going looooong, it's going to moon from here for sure." How about this one "What are you talking about Magic, that high sell volume is a buy signal!" and "The RSI is way oversold. Only an idiot named MagicPoopCannon would think it's going lower from here."

When will they ever learn?

Welcome friends, foes, traders, pro's, and the little guys who are still on their training wheels. You know, the ones who carry big megaphones and shout about how wrong I am all the time, while their positions get decimated. I guess they should have been on team Magic. Anyway, let's get right to it! Looking at the four hour BTC             chart, we can clearly see that the bear flag breakdown has occurred, and BTC             is now back inside of the downtrend channel (in pink.) With that said, I am now in full bear mode. I know that the inverse head and shoulders pattern is still technically valid, but I will not go long, unless we get back above the channel, or we see a capitulation recovery on big volume . This is extremely bearish price action, and technically, what we could have here is a big failed breakout of the downtrend channel . You can see that on 2/27 we got above it, and then we just smashed back into the downtrend channel , which is not a bullish development, by any means.

Now that BTC             has fallen back into the downtrend channel , we could see some consolidation. It's also possible that we turn to test the pink trendline of the channel that we've just broken into. You can see right now that a bit of support is being found right now, on the 78.56% retrace. This level is going to be critical in determining whether or not we consolidate or continue to plummet lower. If the 786 is lost, the next stop will probably be around 7585. However, if the 786 holds, we could consolidate, and test the pink trendline , to see if it will act as resistance. If that happens, we could see a major continuation in the bear market.

On the MACD , you can see that it is continuing to expand to the downside, as the sell side volume consumes the chart. However, the sell volume is decreasing, which leads me to believe that we could see a reversal somewhere around here. With that said, you should never try to catch a falling knife. BTC             is a falling knife right now, and personally, I'm going to remain in the safety of cash, until the time is right.

I want to draw your attention to the trough on 1/17. You can see that it was slightly deeper than the trough of the left shoulder of the inverse head and shoulders pattern. Now, here we are creating a deeper potential trough than the right shoulder. In terms the symmetry of this pattern, it isn't far fetched to think that we could reverse here, and retest the blue neckline, after forming a nearly mirror retracement of the one at the beginning of the pattern. There currently is no indication of that. I'm only speculating on the possibilities.

To be clear, BTC             is falling like a rock, the momentum is expanding, and the sell volume is healthy, but dwindling. BTC             is back inside of the downtrend channel , and it has technically formed a lower lower high, and now a lower low. The inverse head and shoulders pattern is still technically valid, but the current bias remains to the downside. A break below the 786 should send BTC             down to the 7585 level. This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-Magic loves you-

-JD-
Comment: There is a possible second bear flag in BTC. Price action is testing the top of the pink downtrend channel again, as it trades inside of the flag.

This market is toast. I wouldn't encourage anyone to buy BTC at this point.
+1 Reply
la.arsic rev214us
@rev214us, no FUD pls
Reply
rev214us la.arsic
@la.arsic, How much money do you think people will lose ignoring the facts that this market is controlled by whales and is unstable?
+1 Reply
Don't buy flags or patterns anymore, buy what you can afford to lose-for common sense purposes only
Reply
For a while, the sense of any TA is lost when whales are just having fun like girls (Gdax right now)
Reply
Welp, looks like 6k re-test is extremely likely now.
+2 Reply
rev214us deadlyeffect
@deadlyeffect, It will likely fall through that level.
Reply
My call last week is still playing out nicely for the double top reversal. Check my old chart for that.
Here's my update on that chart...
+1 Reply
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