On July 26th, CCN reported that Crypto Twitter’s (CT) biggest bull, Majin, has turned bearish and called for a bitcoin plunge to $7,000. Two months later, the call of the liquidity game theorist is coming to pass. As of this writing, the most dominant cryptocurrency…
Two months later, the call of the liquidity game theorist is coming to pass. As of this writing, the most dominant cryptocurrency is rapidly descending to support of $7,000.
Majin was right to say that demand at $8,000 is so weak that it won’t ignite a bounce.
Now that we’re headed to $7,000, CT’s biggest bull brings us good news. The analyst believes that bitcoin will rise like a phoenix and rally all the way up to $12,000.
When bitcoin broke down from a descending triangle, CT turned extremely bearish and called for a nosedive to $6,000.
However, Majin believes that we won’t be seeing the cryptocurrency trading at $6,000 anytime soon. The liquidity game theorist said,
Price discovery is done below $7,000 in 2018
A bigger dump to sub $8,000 will be the major shakeout event, and it will be over more quickly than sentiment is led to believe.
The analyst then stressed that dumps are healthy and have the tendency to re-inflate the cryptocurrency. The trader noted,
2016-2017 has many examples of deep dumps after consolidation-pennants which flipped into new rallies to higher [levels].
The analyst also said,
Dumps are always super-savage but short-lived in bull markets.
This may be true. Another CT participant, Ad_Infinitum. recently posted a chart that illustrates Majin’s view.
In the last few days, market sentiment has turned extremely bearish. A look at a sentiment tracker shows that participants are extremely fearful.
Majin is counting on the prevailing bearishness to supercharge the dominant cryptocurrency. The analyst said,
Notice how bears took over the sentiment? Now especially, people will want to short rallies. Seems like a good bear trap in the making to me.
The liquidity game theorist also noted,
$7,000 range is a confirmed demand zone. So bears will be cocky here at the worst range. But it’s just begging to become a major shake-out.
Before we ended the interview, Majin said,
Bitcoin always rises like a phoenix against all sentiment. The next part could be to fill all the volume above $12,000.
For the technical purists, we are still in an uptrend in the longer time frame. Thus, Majin’s call for a big push to $12,000 after a severe pullback might come to fruition.
This article was edited by Sam Bourgi.
Last modified: September 27, 2019 2:36 PM UTC