MagicPoopCannon

Why is Everyone Freaking Out? Bitcoin is Still Bullish! (BTC)

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
I hear a lot of people calling for the end of the world, but I wouldn't jump to doomsday conclusions just yet. There's not denying that today's candle is currently bearish engulfing , but look at where it bottomed - exactly on the 50 EMA (in orange.) The same EMA , that has been torturously resistive for this entire bear market. Did you really think that we would just rally higher, without at least turning to it to test it for support? Turning around to test such a critical resistance level is perfectly natural, since we have recently surpassed it. Admittedly, I didn't think a test of the 50 EMA would come this soon, or this abruptly, but it has. So, the 50 EMA is very important to hold right now. If we can hold the 50, then I do believe that price can continue it's ascent to the top of the downtrend channel .

On the RSI , we were getting into overbought territory. However, we are now all the way back in neutral territory. The MACD is beginning to turn to the downside too, but has not yet produced a bearish crossover. So yes, today's price action may be scary, but I'm not too concerned from a bullish standpoint. As long as the 50 EMA and the triangle hold as support, I believe this could simply be the market testing former critical resistance (50 EMA ) for new support. If we get that support, that would actually be very bullish , and the top of the downtrend channel will still be the target.

On the other hand, if those levels are lost, I will probably be forced to swallow my pride and chalk up a loss for the trolls to rage about. They say it's wise to never feed them, but I've always loved to watch the dogs eat. Anyway, if price falls below the triangle, and particularly the December low, I suppose we would then be looking at a different technical picture. With that said, those developments are currently nonexistent. So, the only thing we can see, is that BTC has jerked back to test the 50 EMA for support, and it is currently holding. In summary, I wouldn't write off the bull just yet. In my eyes, I still see a lot of technical evidence to support the argument that the bottom is in. That evidence would be further confirmed, if the 50 EMA holds as support.

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I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir. 

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

-JD- 

Comments

Prob should listen to this guy. I used to think he was a nut but proved me wrong when btc went to 3k
+8 Reply
@m5b11, so he proved you wrong just cuz something that could have happened came true? Anyone can say that stuff
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@m5b11, where were you when he called LTC at 1k by end of 2018?
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m5b11 PhilWil92
@PhilWil92, Hey look he doesnt always get it right, but he has had some pretty decent calls
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@m5b11, I don't disagree with that. Just want people to make sure they don't always take what someone says as gospel
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m5b11 PhilWil92
@PhilWil92, yeah hes no saint lol
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Thanks for the great analysis as usual, Magic. Keep up the good work!
+5 Reply
YOUR CHARTS MORE AND MORE IMPOSSIBLE TO READ. TERRIBLE ESTHETICS'S. WHY DA HELL YOU LEAVE ALL THOSE UNNECESSARY LINES?
+4 Reply
You offer good insight, yet it is kind of funny to read an article where they are quoting Magic Poop Cannon - https://www.newsbtc.com/2019/02/25/btcs-sudden-400-drop-could-be-setting-up-bitcoin-bear-trap-claims-analyst/
+3 Reply
Of course it is still bullish. Look at that symmetry. 4380 is next.

+2 Reply
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