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September 5, 2021

Trader Who Called Last Bitcoin Crash Issues New Warning As BTC Hovers at ‘Make or Break Level’

By Daily Hodl Staff

The trader who accurately called Bitcoin’s top just under $65,000 has issued another warning to BTC bulls as the world’s biggest crypto hovers around $50,000.

The pseudonymous trader known as Dave the Wave tells his 74,000 followers that Bitcoin is at a “make or break” point as it trades at a critical level where multiple technical resistances align.

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“It doesn’t get much better than this – make it or break it time.”

Source: Dave the Wave/Twitter

The analyst’s chart shows BTC sitting at the very top of a rising wedge within a large descending channel, slowly rounding off and threatening to drop below $30,000 over the coming months. Dave the Wave says that to invalidate this thesis, Bitcoin would have to break through one critical resistance level.

“Price convincingly north of $51,000 – invalidated
Price down to the $46,000 area, further validated.”

The trader makes an observation regarding Bitcoin’s interaction with the Gaussian Channels, an indicator typically used to show long-term deviations from price. According to the crypto strategist, BTC already hitting the channels several weeks ago is a sign that it will continue to drop lower.

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“Price has never come back to the Gaussian Channel [on the weekly] without then going on to go deep into that channel. Syncs with the LGC (logarithmic growth channel) nicely, and shows a picture of reducing macro volatility.”

Source: Dave the Wave/Twitter

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Featured Image: Shutterstock/Tithi Luadthong

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