Here's a rational Bitcoin price prediction for this cycle, according to the trader who predicted a May 2021 collapse
The trader who aptly named the May 2021 crypto market crash predicts a price pattern for Bitcoin (BTC) in the current market cycle using a model with historical reliability.
Pseudonymous analyst Dave the Wave tells his 145,100 followers on social media platform X that he expects Bitcoin to continue trading within the upper and lower bounds of his version of the logarithmic growth curve (LGC).
The LGC is an investment model that aims to predict the highs and lows of the Bitcoin market cycle while filtering out short-term volatility.
According to Dave the Wave, it makes much more sense for Bitcoin to continue trading within the LGC in the long term than to abandon the previously proven model.
“Speculators in this area can be broadly divided into those who believe in diminishing returns and those who do not. Supporters of the DM (diminishing marginal returns) principle broadly agree that price will follow the channel outlined in the first chart.
Those who reject the principle see price exceeding it, such as in the second chart, and possibly breaking out to either side. The first seems to me to be much more rational, as it at least has something empirical and historical to draw on.”
The analyst first shares a chart that suggests BTC will see higher highs and lows when trading within the LGC over the years.
Source: Dave the Wave/X
Dave the Wave's second chart shows BTC breaking through the LGC's upper bound before a steep corrective move that sends the crypto king below the model's lower bound.
The trader also uses Fibonacci extensions to predict a price target of $180,000 for BTC in 2025. Fibonacci extensions are used in technical analysis to estimate profit targets and price declines. They are based on Fibonacci ratios.
“BTC Fib Extension Gives $180,000 Target.”
Bitcoin is trading for $51,966 at the time of writing, up 4% in the last seven days.
Don't miss a thing – Subscribe to receive email alerts straight to your inbox
Check price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
Check out the latest headlines
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
Generated image: Midjourney
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.