The crypto analyst who accurately predicted Bitcoin’s retracement last year has updated his roadmap to BTC’s ascent to $100,000 as the king cryptocurrency approaches the apex of a long-term triangle.
Trader Dave the Wave tells his 33,000 Twitter followers that Bitcoin is poised for a big move as the top cryptocurrency shows signs of compression.
“Momentum and volatility flat-lining as price coils within the business end of the triangle. A picture of diminishing returns/ price discovery if there ever was one, and based on what price is actually doing, not what it ‘ought’ to do. Shaping up nicely for the move going forward.”
Based on Dave’s chart, Bitcoin is losing steam as seen on the slumping logarithmic moving average convergence and divergence (LMACD). The indicator is designed to reveal changes in an asset’s trend, strength and momentum.
In addition, the king coin’s volatility looks ready to hit its all-time lows as the Bollinger bands width (BBW) indicator approaches a value of 0.50. The low BBW reading suggests that BTC’s trading range is at its narrowest point in four years.
Bitcoin’s tightening trading range and dying momentum suggest that a violent move is on the horizon as the dominant cryptocurrency approaches the end of a multi-year triangle. Dave says that once volatility returns, he expects Bitcoin to go through a significant correction.
Shorter term price prediction. 50% retracements… pic.twitter.com/NLiRs2EpYZ
— dave the wave (@davthewave) July 17, 2020
Once the pullback is over, Dave sees Bitcoin eventually breaking out of the long-term triangle. He says Bitcoin will recover its all-time high of $20,000 next year before igniting a manic phase that would send the top cryptocurrency above $100,000 before 2022 expires.