Hi friends! Welcome to this update analysis on BITCOIN! Let's get it! Looking at the four hour chart, you can see that the right shoulder of the small head and shoulders pattern has been created. Keep in mind, that when I posted this yesterday, that small rise and fall didn't even exist yet. The formation of this small right shoulder happened more rapidly than I had anticipated, but it happened none-the-less.
With that said, I have to address the hate crew that always seems to show up in my comment sections, no matter how accurate my calls are. They say that all I do is provide a complicated form of if/then statements, but what they don't understand is THAT'S WHAT TA IS. If this happens, then we can expect this. If that happens, then we can expect that. I give you the conditions, you form your own opinion and trade it accordingly. I'm not here to hold hands, or spoon feed people price targets. However, if you want to get down and dirty about the price targets, I called the fall from the all time highs like an absolute beast! I called the exact top in XLM. I gave a PERFECT downside target in Litecoin and many others, when the market was still near all time highs, and everyone else was calling for the moon. Just look at the red line on the bottom of this BTC chart. That has been on my chart since we were well above 13,000! Check the record books! When we got to the bottom, I called the reversal with unprecedented precision. I gave you fractal relationships, before ANYONE else was talking about fractals, and then all of a sudden all of the other traders were talking about fractals. If I'm such a bad analyst, then why am I always right? If I'm such a bad analyst, then why do so many of the other top analysts copy me? I called this entire up-move from the low on BTC and LTC alike. If you don't remember, refresh your memory by looking through the history of my calls. I am an unrivaled king in this game. Don't come here and try to slander my name, and throw shade on my hard work. Just look at whats happening on this chart. People were talking all that noise, while the right shoulder of the small head and shoulders pattern was filling right in front of them. They couldn't recognize a good call if it slapped them in the face. But enough about that, let's look at where BTC is going next!
You can see that the right shoulder of the small red head and shoulders pattern has been filled. Albeit in a more rapid fashion than originally anticipated. When you see small right shoulders form, it is indicative of prolific selling pressure, which mitigates the rise and subsequent formation of a larger right shoulder. This is exemplified by the expanding sell-side momentum on the MACD. You can see that the volume is primarily red, indicating that the sell-side pressure has returned. You can also see that the 50 EMA (in orange) and the 200 EMA (in purple) have fallen, JUST AS ANTICIPATED, by the proposed inverse head and shoulders pattern on my chart. Now here it comes, brace yourself, get ready for the if/then statement. If the rising green trendline is held, then we can assume that the shoulder is going to form at that level, which is critical to hold. If it fails at the green dashed trendline, we could be looking at a more severe correction. That's the condition. If you recall from a few posts ago, I told you that it would be wise to exit your long positions, when the failed breakout occurred, in order to mitigate loss. I told you that you could reenter those long positions, at the next break above the pink trendline, should it occur. As you can see, that was a very valuable call. We could be looking at the formation of an inverse head and shoulders pattern, or another rollover that takes us to the bottom of the pink channel again. For now, I'm on watch for the formation of the right shoulder, on the inverse pattern. That is the primary formation that I'm paying attention to.
Commentaire
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"Oh but Magic doesn't do this and if then that." If you don't like my charting, then why are you here? I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Hey @MagicPoopCannon TA question - if we take the length of head in the upright h&s pattern and subtract it, it drops us around 8,800-8,900. If we look at the depth of the left shoulder it takes us to around 8,900 as well. Can you please explain why the rising trendline at 9,400 is where you have put all our hopes and why its not ok to retract down to 8,900'ish? Thanks
dptene
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@singhdaking, Well, I know I'm not the guy you were hoping to get an answer from but since Magic's probably busy right now I'll try to answer your question to the best of my ability. Bear in mind I'm just a random guy who read all of Magic's posts and I've learned all of my TA from him (well anyway, at least the part that actually works). Jumping in, if I understood Magic's theory correctly, you are quite right that the full retracement potential of this head and shoulders pattern (potential being the key word here) is around 8900. However patterns do not always retrace to their full potential, and when any given pattern breaks you cannot yet know with 100% certainty whether or not it will retrace to its full potential. What you do know however, is that there are key levels of support which need to fall in order for that pattern to retrace to its full potential. And in terms of key support along the way of that full retracement potential, it really doesn't get better than that green trendline. It's a key support level because since September 2017 every single time that trendline was touched for the first time in a long period of time, it always produced a bounce. Like Magic puts it, think of it like a door: every time you knocked on the door for just once, the door never opened. You could argue that on the 2nd February 2018 it failed to produce a bounce because it was actually pierced before the price started to bounce, however magic also taught me not to be a god damn pattern nazi (meaning a pattern, a trend line, a.. anything in technical analysis, doesn't have to be 100% perfect to be 100% viable). Yes the green trend line was pierce there, but the bounce still happened from the area surrounding it, which means it's not 100% perfect but it's definitely 100% viable.
The trendline did actually fall twice, on the 4th Feb and the 14th Feb, but it only fell after it was touched at least once during recent times (remember what magic says a resistance/support level is like a door, the more you kick it the more likely it is to break). Since that trendline never broke from a single kick, the most likely scenario is that well.. it's going not going to break from a single kick. If it did, we would need huge selling volume and there is no indication of that happening. Yes the volume is big but if you look on the chart at the last time the price suffered a break down to the green trendline (from 1st Feb till the 2nd Feb) the general volume was actually bigger than what we're seeing right now and that was still not enough to push through the green trendline in one kick. So the most likely scenario, is that the H&S pattern does not retrace to its full potential and sell out stops on or around the green trendline's area, hence Magic's target.
I am the master of none, knower of not-much and I truly hope the professor answers your question and the random student is not what you're stuck with.
Love
DPT
skulljuice
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Hey Poop,
I don't ever comment, but F$#%K these people who criticize your free analysis, that they access of their own volition. The hope that this last correction of Jan-Feb, had shaken these diaper-clad crybabies out of the Cryptospace, evidently was wrong. Keep up the good work.
LouisMeyer
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Hi MPC
I have been following you for quit a while, and found your analysis very useful and educational.
Please do me a BIG favour. DON'T READ ANY COMMENTS ANYMORE!!!
Just do your thing and forget the rest.
Thank you very much for what you load every day, and please do not stop
satoshinakamoto2020
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the end is near!!!!!!
upvote pls i need to chat with the hot crypto chickas :-)
bravooo poop it is magic !
PipMiesterStronger
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Magic, Your If / Then wording allows us to think for ourselves and not depend on updates
Gilbs
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@PipMiesterStronger, I agree with you completely, coz this will make us smart traders. That is why it’s an analysis, it is not certain yet until you see things start playing out according to it. This makes us thinkers.
The thing is, MPC is giving them shit that they want take credit for, and yet they wanna give MPC theirs and yet they just shit themselves instead. MPC’s my master and teacher.
Just my opinion. I'm not hating', just saying... I think when you post titles like this "LONG LIVE THE BULL!!! BITCOIN!!! (BTC) >=D" ...just two days ago, and then you are surprised/upset about haters....dude, you have got to take some responsibility for that. That is a pretty big miscommunication IMO. I know that in that TA you said that you were watching to see if it broke the "heavy resistance" but that was an afterthought to all your Glee. So IMO you are creating some of the confusion yourself, and better not to say readers "wouldn't recognize a good call if it slapped them in the face." Education is great- your TA is a gift to the community just like the other contributors TA.