A Bitcoin breakout to $14,000 is possible, says prominent analyst

21 May, 2019 | Updated: 21 May, 2019
by Richard Allen
Analysis
A Bitcoin breakout to $14,000 is possible, says prominent analyst

In a recent TradingView post, popular analyst Magic Poop Cannon posits Bitcoin is pushing the top side of a massive downtrend channel, which has been in the works for over a year now. However, this may not be a bad thing.

The analyst begins by proving that we are, in fact, in the midst of a downtrend channel. He notes that on the top side, Bitcoin had two reactions between February and March of 2018 while on the bottom side, there were three reactions. Furthermore, the several reactions seen across the center line all point towards a downtrend channel.

“This is beautiful,” says the analyst, “because it helps us make a little more sense of what has been going on, and it puts more perspective on where we may be heading.”

On that note, Magic Poop Cannon explains that Bitcoin has managed to break through the top of the downtrend line before but hasn’t managed to stay above it. If it fails to hold above the top it’ll sink back inside the downtrend line again. However, if BTC can hold the top of the channel and break out to the upside, a target price of $14,000 is possible, derived by taking the width of the channel and adding it to the breakout point.

However, a problem remains. Bitcoin’s Network Value to Transaction (NVT) ratio is building towards a sell signal, as is the divergence from the log chart’s regression line. Additionally, the money flow index now shows Bitcoin is extremely overbought. As a result, Magic Poop Cannon doesn’t think we're in a bull market yet, but if we break through the channel, “I will be a believer,” he says.

Other traders have also shared their thoughts on the market, some more optimistic than others:

  

BTC/USD chart provided by Tradingview

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

Chepicap is now LIVE in Blockfolio! This is how you receive our latest news in your portfolio tracker!  

Poll

What is next for Bitcoin?

(214 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage