MagicPoopCannon

Bitcoin is Gearing Up For A Nasty Retest of 6K! (BTC)

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! Looking at the four hour chart, you can see that BTC             has formed a bear flag consolidation, after failing to breakout above the inverse head and shoulders pattern on 3/5. Looking at the action inside of the bear flag , you can see that BTC             has produced several failed attempts to successfully rally out of the flag. Resistance has been found at the 50 EMA (in orange) and the current candle is a borderline bearish engulfing candle, that has pushed BTC             back into the body of the flag. The only thing holding BTC             up at this point, is the 20 EMA (in blue.) As I'm writing this, the 20 EMA is actually being pierced. So, if we get some candle closes below the 20 EMA here, the next stop should be the pink trendline , as it converges with the 78.6% retrace. Below there, we should see a bear flag breakdown. If this bear flag does break down, we are very likely to see test of the low on 2/6, meaning BTC             will likely fall to 6,000, or lower.

If you focus on the broad picture of the chart, you can see that BTC             has just failed at my infamous green trendline . The last candle rallied up to it, touched it, and now we've plummeted lower, printing a bearish engulfing candle in the process. Technically, we appear to have just popped out of the bear flag , to confirm that trendline as resistance. That is very bearish price action, and if this current candle closes below the 20 EMA (in blue) we are very likely to see sustained downside action. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.

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: The update is here!

Hello Master, do you think Bitcoin could come back now?
+1 Reply
scottialex n.antoschka
@n.antoschka, highly unlikely. Breaking below $8150 was going to be VERY bearish; most likely going straight down to $6500-$7000
+1 Reply
BROKE DOWN BEAR FLAG
+2 Reply
Surprised he didn't point out the potential breach of 200 day simple moving average. Hasn't traded below this on the 1 day since 2015.
+3 Reply
tharvey30 tharvey30
Except very briefly when it hit 6,000
Reply
scottialex tharvey30
@tharvey30, exactly, I'm following the same MA200 on the Daily
+1 Reply
scottialex tharvey30
@tharvey30, but ANYTHING can happen. The bull run to 20k was too much; a lot of people lost money on that run and now the market is perhaps suffering like never before
Reply
Cryptopile tharvey30
@tharvey30, Wait until the 100EMA drops below the 200EMA. That'll be the start of the bear winter
Reply
Cryptopile tharvey30
@tharvey30, on the daily that is
Reply
Why would EVERYONE be saying down if they assume your chart is correct? If your inverse head and shoulders are correct, why are you disregarding the extra shoulder on each side? Aren't they both touching equivocally less than the inside shoulder????

OR...Why wouldn't the Jan 17-19 dip be part of the original inverse shoulder? Lastly, seems like this downward channel been pierced twice now? Why wouldn't this be going up?! 12600.

I ask questions to gain information, not to be abrasive. Thanks!!!
+8 Reply
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