An analyst who accurately predicted the beginning of Bitcoin big 2019 pullback says BTC may be due for a serious correction before it can kick off a new bull run.
The pseudonymous analyst Dave the Wave tells his 28,000 followers on Twitter that he believes the leading cryptocurrency is about to hit a resistance level that has kept the market bearish since early 2018.
Should the script play out as expected, he believes Bitcoin could rally in the short term before igniting a strong sell-off that could bring the cryptocurrency to just above $6,000.
If we're to see a year long manic market, a longer cycle, and diminished returns…. pic.twitter.com/Fv3z9bjgN4
— dave the wave (@davthewave) May 5, 2020
Based on the analyst’s monthly chart, BTC is coiling in a long-term descending triangle with a significant correction due sometime before 2021.
But Dave expects Bitcoin to recover and eventually breach the resistance to launch the next bull market. The technical analyst factors Bitcoin’s historical cycles and its diminishing returns for each subsequent bull run to come up with a $100,000 prediction. He expects the cryptocurrency to hit the target by 2023.
Almost a year ago, Dave correctly predicted the start of Bitcoin’s 2019 retreat. He said that Bitcoin would fall to around $6,000 before 2019 ended. The analyst’s forecast was spot on as BTC recorded a 2019 low of $6,425 in December.
Bitcoin is trading at $9,045.61, up 0.12% at time of publishing.