Practically everyone was calling for the moon and Lambos yesterday. But what happened? Your boy Magic came out and warned you of the bull trap, right when the time was right. That's why I keep saying that we need to stay focused on the primary trend. Don't let these small rallies blind you from the crippled state of this market. Until we see evidence that the bottom is in, the trend is our friend — not those bull trapping rallies.
In the coming days, it's very likely that we will test the red neckline of the head and shoulders pattern, to complete the formation of the right shoulder. Once we break down below the neckline (in red) the first MAJOR support level is at 4970. A lot of people have asked me why I don't have 6000 or 5400 as major support levels. Although, they could definitely be reactionary, we can't overlook the fact that this is an enormous head and shoulders formation. Whenever we break down from it, the breakdown could be violent. Also, if you look at head and shoulders formations that have a positively sloping neckline (such as this one) the breakdowns don't usually find support on the troughs on either side of the head. Based on that, I will watch 6000 and 5400 when price reaches them, but I believe that the odds of them being highly supportive are relatively low. As I said before, 4970 will be the first major support level, followed by the rising black trendline support, and then the cup and handle target, down at 3000. Let me reiterate, 6000 could be supportive *initially* but it isn't likely to be supportive for long, based on the size of the head and shoulders pattern that it will have just broken down from. In other words, it is HIGHLY unlikely, that we will break down from this enormous head and shoulders pattern, to only fall a few hundred dollars to 6000. So you can take your double bottom dreams, crumple them up, throw them in the waste basket, and set that thing on fire.
On the chart, you can see that the repetitive pattern worked out spectacularly! Spotting this pattern, is how I realized that the market was likely to reverse. So, where is the pattern now? Well you can see that from the bear flag, we fell to the sharp low (blue arrow) and then rallied into the resistance at the 50 EMA (in orange) and now BTC has reversed back to form a trough (pink arrow.) However, this low is a bit different than the last pink arrow low. It looks like we're starting to build a small bear flag, so this could be where the pattern ends, and we break down instead of rallying again. As you can see, the first pink arrow produced a rally back above the 50 EMA. So, even if we do see a rally, it's very likely to be stopped again by the 50, as BTC continues to crumble into my head and shoulders neckline.
Since there are some people who will say I'm calling both sides of the market, let me be perfectly clear. I'M CALLING FOR MORE DOWNSIDE. A LOT MORE. In terms of calling exact fluctuations, I'd say I'm pretty freakin good at it, so here's what I see. Most likely, the pattern will end here, and we will break down from this bear flag. However, a rally is very likely to be capped by the 50, sending BTC back to the downside. You see that trendline at 4970? As long as we remain in the downtrend channel, we'll be there in 34 days at most — that, I can guarantee. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir! ;)
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Bình luận
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FYI, the pink arrows do not indicate that I think a rally is about to ensue. It's just showing where we are in the pattern. As I said above, the pattern is looking a bit different. We are starting to form a bear flag here, so we may see a breakdown instead of a rally, bringing an end to this pattern.
@D4rkEnergY, what happened to the famous 'D4 loves you <3' at the end of your charts and comments!
D4rkEnergY
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@lvg3g, Everyone knows that I love you guys - Even Poop <3
dRends35
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@D4rkEnergY, Couple of youtubers i really like were saying the bulls are coming, and here's some fundamentals - news etc, we're off!! and i wondered. Few TV'ers i've been following suggesting bullish action, but yet again Magic was right to call the downside. It seems that he has the hierarchy of technicals mapped out really well. I've only been here a little while but its been great to see. :D
BTW, i really liked your log analysis of ETHBTC. I'm learning from you too ;)
venturetrade
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@D4rkEnergY, DARKy I am the troll here so please butt out of Poopie's comment section. ;)
PLuongo
Apr 3
WRONG. WRONG. And wrong again. No updates today?? When we see a 30% spike? Shame shame. This market is going way up folks.
Boss_Coyote
Apr 3
Omg LTC to the moon ! He's MIA ignoring the "haters"
k0tkin
Apr 3
Did you said $50 or $500 =D
retiringsoon1
Apr 2
@MagicPoopCannon, I think we will have another shot at 10K first
jithepi
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Thanks once more Sage, I'm not sure why you get such a negative reaction from others. They can always change the channel, but this is my favorite opera, so I'll continue to tune in. Thanks for sharing.
gerdwe
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A Head and Shoulder formation happens per definition at the end of an uptrend, not at a random point at the bottom. If you use TA, do so correctly