Bitcoin analyst, MagicPoopCannon has postulated that BTC could test the $80k to $90k price area by mid next year
He cites that Bitcoin has followed a beautiful rising arc pattern since the days of Satoshi
This arc points to $14k being broken, $20k being retested and the possibility of $80k – $90k by mid-2021
Weekly RSI is in overbought territory and is known to mark Bitcoin bull runs
Veteran Bitcoin analyst, MagicPoopCannon, has provided a macro-analysis of BTC in which he sees the King of Crypto testing the $80,000 to $90,000 by mid next year. According to Magic, Bitcoin has followed a ‘beautiful pattern’ in the form of ‘a blue arc’ since the days of Satoshi.
Bitcoin continues to follow the most beautiful pattern in the history of charts…The rising arc (in blue) has persisted since the days of Satoshi, and there is STILL no sign of failure.
Looking back to the fall during March, we can see that Bitcoinbasically touched the bottom of the rising arc, and held it as support. Now, we can see that BTCis testing a breakout above the 14,000 level, which I have said on TView and Twitter, is an extremely important hurdle.
If BTCgets above 14K, we could see a rapid rise to 17000ish, and then ultimately a test of the all time high at 20000.
Bitcoin’s Blue Arc that Could Send BTC to $80k – $90k
To further demonstrate his analysis, Magic provided the following chart with the blue arc highlighted for a better visual cue of his analysis.
Additionally, Magic adds that if Bitcoin breaks $14k with enough confidence, there is nothing stopping Bitcoin from breaking $20k and ultimately testing the $80k to $90k price area.
…I think there is plenty of evidence to suggest that we could see BTC test the 80,000-90,000 region by the middle of next year. If it continues to follow the arc, and we get above 14K, a test of the all time high will be inevitable.
If we surpass the all time high, which I do believe would happen in that scenario, the top of the rising arc is the next stop. We could be on the precipice of a new crypto mania, if BTC can break above 14K, and then 20K. The arc says it will happen, but only time will tell.
Bitcoin is in a Bull Market
With respect to Bitcoin’s current market environment, Magic point out that BTC’s weekly RSI is in overbought territory which has always been an indicator of a bull run. The weekly RSI was overbought in July 2012 and November 2015 before each previous bullish cycle.
The weekly RSI was also overbought in May of 2019 although the bullish market of last year did not produce an all-time high. The same weekly RSI is now in overbought territory and could be the first confirmation of a bullish environment for Bitcoin.
If $14k Fails, Expect a Retest of the Lower Boundary of the Blue Arc
However, Magic cautioned that if Bitcoin fails to retake the $14k price level, BTC stands to drop to the bottom boundary of the blue arc illustrated above.
For now, we need to keep a close eye on the action around 14K. If it is meaningfully broken, 20K will be next, and the rise to 20K could be rapid. Obviously, a failure to surpass 14Kcould cause BTCto retest the bottom of the rising arc. However, at the moment, that doesn’t appear to be the higher probability outcome.