Quick take:
- Bitcoin analyst, MagicPoopCannon, believes that Bitcoin will ultimately challenge its previous ATH
- However, it has one more resistance level at the $17,100 price area
- If BTC does not break this resistance, it could drop back down to $13,800
- Bitcoin could then bounce from $13,800 to a new all-time high
Bitcoin analyst, MagicPoopCannon, has provided his most recent insight into Bitcoin’s probability of breaking its previous all-time high. According to Magic, Bitcoin (BTC) is on a path towards testing a crucial resistance area at the $17,000 level. This is where Bitcoin formed a 2018 peak at $17,100 and could provide a massive roadblock for BTC moving forward.
At the moment, it’s important to know that 17,000 is a critical level for many reasons. Firstly, you can see that a prominent peak was formed in January of 2018 (right after the all time high) at the 17,100 level. You can see that with the yellow horizontal trendline [chart below]. The volatility at that peak was obviously quite severe. So, there is a good chance that it will act as initial resistance.
Bitcoin Formed an Inverted Head & Shoulders from Oct. 2019
Magic also shared the following Bitcoin chart that highlights that BTC formed an inverted Head and shoulders that began in October 2019.
According to Magic, the inverted head and shoulders points towards Bitcoin retesting the $17k price level.
After price broke out above the neckline, it returned to it and held it as support through the entire month of September. That was a key indicator that BTCwas confirming the inverted head and shoulders pattern.
Looking at the price target of the inverted head and shoulders pattern, you can see that the size of the head projects a rise exactly to the 17,000 level, as shown with the vertical dotted lines.
BTC Could Fall Back Down to $13,800 Before Challenging $20k
If the inverted head and shoulders plays out to the $17k level, Magic postulates that the resistance at this level could cause BTC to drop to the $13,800 support zone. Furthermore, the daily MACD and decreasing trade volume are also hinting at a pullback.
…the MACD is showing signs of a potential bearish crossover…the volume has been falling while price has been rising. This is a bearish indicator, showing that the trading activity is supporting the elevating prices at a decreasing rate…if the 17,000 level acts as resistance.
If BTC cannot breakout above it, I think there is a decent chance that we could see BTC return to the 13,800 level, to test and confirm it as support.
Once Bitcoin falls back to the $13,800 support area, he believes that it will have enough momentum to eventually challenge the December 2017 all-time high of $20k.
Then, we could see the final explosion towards the 20,000 level, where BTC will inevitably test the all time high. Whether we pull back from 17K or not, I do believe that BTC will undoubtedly retest the all time high.