The crypto analyst, who correctly predicted the May 2021 market crash, warns that even if Bitcoin continues its long-term rise in price, BTC could experience a significant drop.
Popular pseudonymous analyst Dave the Wave shared a Bitcoin chart with his 97,500 Twitter followers that highlights the prolonged decline that stretches through the summer of 2020 and lasted from November to this January.
While the last rally that started earlier this month failed, Dave pointed to $25,000 as a potential bottom for Bitcoin. Based on past price movements, the analyst to evaluate made:
“If we make a similar Bitcoin move as the previous two, we will consider the 25k region.”
The charter then tried to calm anxious investors using technical analysis (TA) while looking at Bitcoin’s annual moving average in weekly candles dating back to 2013.
“Up down, up down, up down.
If you’re not going to get dizzy from one day to the next, you use a bit of old-fashioned TA (technical analysis)… for example, the one-year moving average…”
Dave the Wave concluded his analysis of Bitcoin by explaining how the long-term outlook for BTC remains bullish despite several descending wedges, each lasting a year.
“Earlier [Kripto Twitter]Do not think that I have seen such a depressive environment in . Perhaps an equal and opposite reaction to the previous exaggerated environment.
Remember people, they stay macro bullish even if we get a solid correction.
Only those with a unit bias do not see that the Bitcoin price is still high here.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.