Bitcoin Analyst: A BTC Pullback Might Happen at the $36k Area
- MagicPoopCannon has highlighted $36,200 as a possible pullback zone for Bitcoin
- He explains that Bitcoin’s parabolic move could be ‘running out of gas’
- If a rejection occurs at $36,200, the 10 week MA could provide some support at $22k
- If a correction happens at $36k, it will be temporary and Bitcoin will go on to test $80k – $90k levels
Veteran Bitcoin and Crypto analyst, MagicPoopCannon, has shared his most recent analysis on the status of Bitcoin. According to Magic, Bitcoin will continue to thrive till the $36,200 price area. Magic calculated this level by measuring the length of the move from the 2019 low of around $3,700 to the previous all-time high of $20k, then adding it to the latter level.
He explains his method as follows with his Bitcoin analysis available in the chart below.
…I’ve had a target out for BTC to reach the 36,000 level. That’s based on the structure that was built before BTC broke out above the 2017 high of 19797. Measuring the depth of the structure (vertical pink dotted trendline) and applying that measurement to the breakout level gives us a target around the 36,200. Considering the parabolic nature of BTC’s rise here, I think it is very close to running out of gas on this charge higher. So, I do think the 36,000 level could be a topping area for Bitcoin here.
10 Week Moving Average Provides Support at $22k
In terms of a possible support zone for the forecasted pullback, Magic highlights the 10 week moving average (in black above) as a possible area of interest. This area equates to around $22k as explained below.
What I’m currently watching, other than potential resistance at the 36,000 level, is a retracement down to the 10 week MA (in black.) In previous bull markets, BTCretraced to the 10 week MA on the way up…Currently, the 10 week MA is at 22,182.
The Bitcoin Pullback will be Short-lived
Magic concludes his analysis by stating that a pullback down to $22k will be short-lived as Bitcoin is destined for $80k and even $90k within the next 12 months.
While I do think BTC is due for a correction soon, I think it will only be temporary. Ultimately, I think BTC will reach 70-80,000 within the next year, which I have shown in previous long-term analyses.
Source: Read Full Article