Trader who predicted May 2021 Bitcoin collapse warns of a significant BTC correction in the coming months
A trader known for his timely decisions in the crypto space is warning that Bitcoin (BTC) could face a severe market correction in the coming months.
Pseudonymous analyst Dave the Wave tells his 139,400 X-followers that Bitcoin could fall to the bottom of its logarithmic growth curve (LGC) before the end of the year.
The goal of the LGC is to gauge Bitcoin’s long-term ups and downs throughout its lifetime, while ignoring short-term volatility.
Says the analyst
“Over the course of eight months, BTC price has doubled from the bottom to the top of the LGC buy zone.
Would it be so terrible if the price consolidates 38% of this move back to base over the next few months?
I mean, for longer-term investors, it would still be in buy territory.”
Credit: Dave the Wave/X
Looking at the analyst’s chart, he appears to be predicting that the 38% drop from this year’s peak could take Bitcoin to around $24,000 around December 2023.
According to the trader, the LGC model shows that Bitcoin has reached a critical crossing point between resistance and support levels at its current value, suggesting that a significant price move is imminent.
“X marks the spot.
Your move BTC.
Interesting that there are both support and resistance levels [shorter term] Meet the top and bottom lines of the LGC buy zone on the same timeline.”
Credit: Dave the Wave/X
He also says that Bitcoin’s recent sideways trading is a clear sign that the crypto king is turning into an asset.
“The good news is that we have to wait for increasing price stabilization [from the macro perspective] is that as BTC matures towards eventual price discovery, it becomes less volatile.”
Credit: Dave the Wave/X
Bitcoin is trading at $29,571 at the time of writing, up 0.7% over the past 24 hours.
Don’t miss a thing – Subscribe to receive email alerts straight to your inbox
Check the 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 you transfer and trade 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 participates in affiliate marketing.
Featured image: Shutterstock/Urboshi/Chuenmanuse
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.