A prominent crypto analyst who gained popularity by accurately predicting the timing of the 2019 market collapse is warning traders that the Bitcoin price may be headed for lower ranges.
In a new tweet, the crypto trader, known as Dave the Wave in the industry, highlights his own technical analysis which indicates that Bitcoin is headed for a temporary bearish turn.
“*Short term* channel formed. You know the drill.”
Dave the Wave, who accurately predicted Bitcoin’s crash to $6,400 from $11,400 in 2019, reiterates that he is only bearish on a shorter timeframe.
“Surprised I have to spell this out for some. Short term was emphasized, and so ‘the drill’ refers to that – charting of short-term volatility is less weightier than the longer term, something I mention often.”
The cryptocurrency trader also reveals that Bitcoin’s price action is another sign that the leading digital asset is about to reverse and head south.
“No certainties of course [*especially* in the short term] but price action is currently on course for a series of lower highs and lower lows….”
Dave the Wave further points out that when attempting to return to $60,000 this May, Bitcoin had trouble reclaiming the $58,000 level.
“Certainly seems price has met a significant level here just south of the LGC channel top.”
To buttress his bearish Bitcoin outlook, the crypto trader also posted a chart showing a head and shoulders pattern, the presence of which can sometimes signal the end of a bull trend.
At time of writing, Bitcoin is wrestling with the $50,000 level after taking a dip down to $47,000, according to CoinGecko.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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