A crypto strategist who accurately called Bitcoin’s meltdown in May 2021 now predicts a potential rally that could send BTC against its long-term diagonal resistance.
Pseudonymous analyst Dave the Wave tells his 112,100 Twitter followers that Bitcoin is trading within a rising channel and possibly preparing for a short-term rally to his goal.
“Bitcoin shorter term.”
According to the crypto strategist, his target of $ 39,547 is “speculative”[ads1]; and is just valid as long as the channel lasts.
Although Dave the Wave remains cautious, he says traders who think Bitcoin will see its 2017 $ 20,000 cycle high again should start thinking about risk management considering that BTC is down big from the all-time high.
“No one last year realized that the Bitcoin price fell to the previous record high. And yet now clarion calls abound. Is it possible? Sure, but people have to balance [renewed] risk on the upside against the risk on the downside …
“Simply amazed that I am now more bullish than ‘once were hyper-bulls’, which have become bearish, or at best neutral, since the recent capitulation.”
The crypto strategist is too entertaining the opportunity for the bottom of the bear market is already in.
“Similarly, the lowest could have already been put in. Short-term volatility is always the most difficult to predict so near random. It is the long-term indicators, according to the monthly chart, that provide the most reliability in technical analysis.”
When we look at the long-term time frame, Dave the Wave shows how Bitcoin has always bottomed out after touching the four-year moving average on the monthly chart.
“Support for the four-year moving average.”
At the time of writing, Bitcoin is trading at $ 29,807 while the four-year moving average on the monthly chart hovers over $ 22,000.
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Featured image: Shutterstock / Mars0hod