One of the famous analysts in the cryptocurrency space argues that Bitcoin (BTC) is ready to continue its downtrend. This mysterious analyst, who correctly predicted that Bitcoin will drop to $ 6,400 in mid-2019, goes by the nickname Dave the Wave. Over the past years, the analyst has predicted that BTC will rise to around $11,000 before returning to $8,000, and he was right in his prediction. As the cryptocurrency market started to rally in the past years, the analyst said that BTC will hit $11,000 by February, and it’s a hit. The analyst recently warned investors of the impending market decline before the crash in late May, and he knew it. cryptocoin.com We have compiled the latest posts of this master analyst for Bitcoin for you.
“Bitcoin (BTC) enters bear cycle”
According to the analyst, Bitcoin may have confirmed that it has entered a bear market after it recently rejected the $49,000 region. Bitcoin started the week in bearish mode after falling 10% since the market opened. The leading cryptocurrency lost nearly 5,000 points, falling from $47,250 to $42,490. While a daily close below $44,000 would confirm a full reversal, one analyst with a history of searching for Bitcoin’s price activity believes more losses are on the horizon.
The chartist, operating under the pseudonym Dave the Wave, predicted Bitcoin to hit $70,000 in January (it reached $64,000 in April and lost more than half of its value by mid-July). The veteran analyst argues that the wave BTC has entered a new correction phase. Dave the Wave shared a detailed blog post arguing that BTC’s price action develops in “a random series of mini-crazes and subsequent corrections, cycles with gradually decreasing volatility and then leading to price discovery.”
Following the coin’s recent rejection from the $49,000 resistance zone, the technical analyst predicted that BTC could drop to the 200-week moving average of $16,000 in the coming months.
What do drops in BTC network activity mean?
According to crypto analyst Ali Martinez, the downside potential may be limited as MicroStrategy and El Salvador are adding to the buying pressure behind Bitcoin with recent purchases. Still, the analyst notes that network activity indicates that retail investor interest may be waning. The number of new daily addresses joining the BTC network has hit a series of lower levels over the past two weeks. About 436,000 new Bitcoin addresses were created at the peak on September 16, compared to 463,000 new addresses created on September 2.
Ali Martinez emphasizes that the continued contraction of the network can be considered a pessimistic signal as user adoption shows a decline over time and says that network growth is generally considered one of the most accurate price predictors. The analyst makes the following assessment:
Exponential network growth tends to pave the way for bullish price action, while a long period of network contraction may indicate that prices are about to fall. The outlook is likely to remain bearish until the number of new daily addresses created on the BTC network increases.
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