An analyst who correctly called the start of Bitcoin’s major correction last year says that traders who are waiting to catch the bottom of another BTC pullback may miss the boat.
The pseudonymous trader Dave the Wave tells his 27,000 followers on Twitter that he believes Bitcoin is due for one last retracement down to a level of support at $6,400.
After the final dip, the trader expects Bitcoin to ignite a parabolic bull run that will send the world’s leading cryptocurrency to around $110,000 at the end of 2022.
But the analyst tells his followers that bottom fishing Bitcoin is not the smartest move. Instead, he believes traders should buy BTC in tranches before it takes off.
“Those that imagine they can buy BTC at the ideal buying price [at the bottom of the next and final dip] are fooling themselves.
The best policy is to average in while price is in the ‘buy zone’… something I’ve been saying since the bottom of 3K over a year back.”
With the global economy sputtering, Dave says investors should forget about the stock-to-flow model, which tracks the scarcity of Bitcoin in relation to its value.
He says people should also forget about the notion that the US dollar is at risk of hyperinflation. From here on out, he says the question is solely how much demand there is for BTC.
… and no need for the hyper-inflationary hypothesis.
— dave the wave (@davthewave) April 21, 2020
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