Bitcoin Could See 15% to 20% Pullback Next Week
An analyst with the moniker “Magic Poop Cannon” recently warned investors that Bitcoin (BTC) could see a large pullback in the coming weeks. In an analysis posted to Trading View, Magic explained that BTC’s rally from $3,400 in January to $5,450 just last week “painted half of an enormous evening star doji pattern,” adding that the movement has been in “textbook formation” thus far.
For those who missed the memo, an evening star is a reversal pattern, in which there is a large uptrend (seen last week), stagnation (this week), and reversal. A doji candle is one in which its opening and closing price are effectively the same, signaling indecision in a market.
If this “evening star doji” pattern plays out as Magic expects, Bitcoin could see a 15% to 20% drop to $4,100 in the coming ten days, and then sell-off even further, potentially to the mid $3,000s, to finish this formation.
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