The latest analysis and prediction by MagicPoopCannon places Bitcoin at sub $3,000 by the second quarter of 2020. The forecast comes at a time when Bitcoin is struggling to maintain its price over $7,000.

Warning! Here's Why BTC is Set To Fall To 3000 or Lower! – #BLX chart https://t.co/etp5Ym3K0L

— MAGIC (@MagicPoopCannon) November 23, 2019

In his analysis, Magic uses the Elliot Wave theory to describe the events that are soon likely to occur.

A Vicious Downward Trend

From a mere observation of Bitcoin’s price trend in the past month, Bitcoin appears to be losing the gains it had made in 2019. This may be towards predicted lows before it starts a bull run or towards new record lows.

Apart from the falling price of Bitcoin lately, Magic highlights another variable that has also been on the downward trend. In his analysis, he mentions that the Bitcoin trading volume has been decreasing since 2015 (indicated by the black trendline).

Magic argues that the drop in price could favor Bitcoin’s trading volume as more people are likely to buy at that price point.

Diverging Views

Magic mentions that he used the Elliot Weaver theory in his analysis and prediction.

Guys, EW isn’t as simple as drawing lines. If you don’t know the intricacies of it, don’t try to use it. This count is not valid. 14k+ is next. I’ll see you on the other side, Magic. https://t.co/xTRYRHNGty

— Credible Crypto (@CredibleCrypto) November 23, 2019

According to Credible Crypto, there’s a lot more involved in analysis using the Elliot Weaver Theory. Magic also mentions in his commentary that the theory is prone to misinterpretation.

Further, Credible Crypto also adds that Bitcoin is on its way past $14,000.

The predicted price fall may be to shake out any weak hands before Bitcoin moves up to new highs. Various factors are working for Bitcoin, especially on the supply end as the Bitcoin supply is set to reduce significantly in 2020.

Moreover, countries are warming up to cryptocurrencies and blockchain technology. This will likely boost investor confidence.

The current downward trend will likely act as a steppingstone for Bitcoin to reach higher prices.

Featured Image Source: Siam Blockchain