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Quick grip:
- Bitcoin Analyst MagicPoopCannon Believes Bitcoin Will Eventually Challenge Its Previous ATH
- However, it has an additional resistance level in the $ 17,100 price area
- If BTC doesn’t break this resistance, it could drop as low as $ 13,800
- Bitcoin could then rebound from $ 13,800 to a new all-time high
Bitcoin analyst MagicPoopCannon provided his most recent view on Bitcoin’s likelihood of breaking its previous all-time high. According to Magic, Bitcoin (BTC) is well on its way to testing a crucial resistance area at the $ 17,000 level. This is where Bitcoin peaked in 2018 at $ 17,100 and could provide a huge hurdle for BTC in the future.
At the moment, it is important to know that 17,000 is critical for many reasons. First, you can see that a prominent peak formed in January 2018 (just after the all-time high) at the 17,100 level. You can see this with the yellow horizontal trend line [chart below]. The volatility at that peak it was obviously quite severe. Hence, there is a good chance that it acts as an initial resistance.
Bitcoin has formed a reversed head and shoulders since October 2019
Magic also shared the following Bitcoin chart which highlights that BTC has formed a reversed head and shoulders that started in October 2019.
According to Magic, the reversed head and shoulders indicate that Bitcoin is retesting the $ 17k price level.
After the price exploded above the neckline, it went back to it and held it as support throughout September. That was a key indicator that BTChe was confirming the reverse head and shoulders template.
Looking at the inverted price target head and shoulders pattern, you can see that the size of the head projects an increase to exactly the 17,000 level, as shown with the vertical dashed lines.
BTC could return to $ 13,800 before challenging $ 20k
If the reversed head and shoulders reach the $ 17k level, Magic postulates that resistance at this level could push BTC down to the $ 13,800 support zone. Furthermore, the daily MACD and decreasing trading volume also suggests a pullback.
…the MACD is showing signs of potential bearish crossover … the volume it has fallen as the price has risen. This is a bearish indicator, showing that trading activity is supporting rising prices at a decreasing rate … if the 17,000 level acts as a resistance.
Self BTC can’t get out above it, I think there is a good chance we could see BTC return to level 13,800, to test it and confirm it as support.
Once Bitcoin falls back into the $ 13,800 support area, he believes it will have enough momentum to eventually challenge the December 2017 all-time high of $ 20k.
So, we could see the final explosion towards the 20,000 level, where BTC it will inevitably test the all-time high. Whether we withdraw from 17K or not, I believe it BTC no doubt it will retest the all-time high.
