Bitcoin (BTC) can slowly collapse to $ 3,600 if the textbook trend is played out

Bitcoin can see 15% to 20% Pullback next week

An analyst with moniker "Magic Poop Cannon" recently announced investors that Bitcoin (BTC) could see a major withdrawal in the coming weeks. In an analysis published in Trading View, Magic explained that the BTC rally from $ 3,400 in January to $ 5,450 just last week "painted half of a huge evening star-doji pattern", adding that the movement has been in "textbook formation" so far. [1[ads1]9659003] For those who missed the note, an evening star is a reversal pattern, where there is a big show (seen last week), stagnation (this week) and reversal. A doji candle is one where the opening and closing price is the same and signals indecision in a market.

If this "evening star Doji" pattern plays like Magic expects, Bitcoin can see a 15% to 20% drop to $ 4,100 over the next ten days, and then sell off further, potentially to the mid $ 3000, for to complete this formation.

Magic's bearish sentiment was supported by the fact that while Bitcoin has surmounted its 200-day and 200-week moving averages, it was rejected at the possibly more important 50-week moving average and signaled that BTC is not away from home just yet.

This is not the first time Magic has stated that Bitcoin dealers should be cautious in the coming days. As reported by Ethereum World News earlier, while Bitcoin's early April rally, which brought it over $ 4,200 and its 200-day moving average, was bullish, the BTC failed to bypass a major rally. As a precedence over the upper trend the line was rejected in the form of a massive, fast Bitcoin deposit, Magic claims there is a potential for the BTC to fall to the bottom of its channel, which currently sits at ~ $ 4,300.

This seems bearish, especially considering that the BTC reaches $ 4,300 from today's levels, would be a 17% decline, but Magic claims that the technical things indicate that not all sunshine and rainbows. More specifically, the Moving Average Convergence Divergence (MACD), per trader, is "ready for a bearish crossover. The relative strength index (RSI) also shows signs that a further withdrawal is coming in.

Still clear … In the long run anyway

Sure, Magic seems to be careful that a return of $ 4,000 and even lower is possible, but we would be referring not to reveal that the analyst is still bullish on Bitcoin for a long time. optimistic tweet that was posted before the said analysis, Magic wrote that he expects to see the BTC peak at around $ 150,000 in the coming years, and can potentially even reach $ 500,000 in the 2030s.

Magic's seemingly wishy-washy market sentiment gives a good point: Bitcoin can easily see its downsides, perhaps even falling below $ 3000, and still have a bright future for themselves. In fact, it could be argued that a further breakdown could be healthier for the industry, as it would scare scammers and other stakeholders trying to exploit crypto before the apparent final setback.

  Photo by Sharon McCutcheon on Unsplash 

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