The positive momentum garnered by Bitcoin and the entire cryptocurrency market from the Chinese enclave was lost after a rumor surfaced that the office of the largest exchange Binance, in China, was raided by police and afterward forced to close down.
It wasn’t enough, Bitcoin has been dealt with by the bears once again. The leading cryptocurrency has now broken the $6,600 support mark to settle beneath the 100 hourly SMA with a possibility for a further drop below $6,400 zone as BTC earlier tested $6,500.
In the same line, a practical cryptocurrency analyst has warned that an unexpected melting down into halving may prevail, and BTC could shock the world with a massive plunge that may reach $3,000 or beyond.
Known as MagicPoopCannon on Tradingview, the experienced market analyst said he never had confidence in the recent bull run, especially because it fell on a regression arc.
MagicPoopCannon said the weekly log chart of Bitcoin had printed five uptrend impulse waves that began at its creation and ended when BTC reached all-time high in 2017. However, as said in a previous analysis, BTC has subsequently been in ABC correction phase. The analyst added that the trend on the ABC phase is becoming clearer.
Image Credit: TradingView.
The Elliott wave was the basis of MagicPoopCannon’s analysis. For completion of the ABC pattern as illustrated in the chart, BTC will likely breakdown the blue regression arc. Hence, if Bitcoin falls rapidly to the C point, then we will have BTC somewhere around $3,000.
Furthermore, if Bitcoin completes the ABC wave, a fresh 12345 wave impulse may commence. MagicPoopCannon said the price of Bitcoin is somewhat tied to news from China, “and they’re apparently on a warpath to end all crypto trading.”
The analyst believes that since more than 60% of Bitcoin’s mining network resides within the Chinese border, China is capable of causing massive disruption in the crypto ecosystem.
The expert added that 50 week MA (in orange) is now below the price trend. With a previous prediction haven played out, MagicPoopCannon said Bitcoin will soon break below the 50 week MA, and test the psychological $6000 support. A break down to this point will, therefore, cause a fall to the $5600 range and clinch with the 200 week MA (in purple.)
If this happens, Bitcoin will repeat the December 2018 trend when it clinched $3200. In a worse situation, as predicted by the Elliott wave, BTC trend will break below this point.
The trader furthered that on greater losing ground, if BTC retests the “3000 area at the bottom of the blue regression arc,” he thinks $2000 or lower will be the real bottom for Bitcoin.
Trader MagicPoopCannon warned the fact that BTC has risen almost all its life is no reason to believe that it will be profitable from hereon.