Bitcoin zoomed past the $17,115 resistance level like it did not exist
BTC is still showing signs of bullish momentum
Its parabolic nature since September points to a pullback to $13,800
However, a pullback is not guaranteed and Bitcoin could continue rising
Bitcoin Analyst, MagicPoopCannon, has shared his most recent analysis of BTC in which he points out that the King of Crypto zoomed past the $17,115 resistance level like it did not exist. Furthermore, Bitcoin is showing little signs of slowing down despite exhibiting a parabolic rally that should result in a pullback very soon.
A Bitcoin correction would be a natural consequence of such a rally but Magic warns it is not guaranteed.
… BTC has smashed through the pivot high resistance level at 17115 (yellow trendline) like it didn’t even exist. While BTCis currently showing no signs of slowing, the parabolic nature of this rally has me anticipating a pullback.
With that said, a pullback is technically not guaranteed. In fact, if you look back at previous instances where BTC took out old all time highs, there are several examples where BTC continued a meteoric rise, without pulling back much at all.
Why a Bitcoin Pullback Could Happen
When exploring the possibilities of Bitcoin correcting, Magic explained that BTC had extended too far from the green and red Gaussian Channel in the chart below. According to Magic, when Bitcoin extends too far from this channel, chances are that it will return to, or near it, in the near future.
He also pointed out that Bitcoin’s NVT ratio was high. This fact coupled with the current parabolic run should signal an inflection point for Bitcoin.
So, we can see that an extreme NVT reading coupled with a parabolic move in price results in a reversal with 100% accuracy since 2017, possibly even further back.
Looking at the current price action, we can see that it is absolutely parabolic, and there is also an extreme reading on the NVT. So, there is reason to believe, based on this analysis, that we will see a pullback very soon.
$13,800 is Bitcoin’s Strongest Area
In his concluding remarks, Magic pointed out if there was a correction, Bitcoin would most likely test the $13,800 area as support.
If [a correction] happens, I think it could probably take us down to the Gaussian Channel, or somewhere close to it. In fact, that green trendline at 13800 looks like a likely target, as it was never tested for support, and it is close to the Gaussian Channel.