The analyst who called the May 2021 crypto market collapse says there’s now a case to be made for Bitcoin (BTC) to rally its way to the $135,000 level.
The closely followed pseudonymous analyst known as Dave the Wave tells his 96,000 Twitter followers that based on one theory, BTC could top out roughly 229% above current price levels about a year from now.
By drawing straight, long-term trend lines through each Bitcoin bull cycle, Dave the Wave identifies each cycle’s bottom, top, and bear market bottom.
“One for the bulls.
The ‘BBT’s project a 135K target mid next year~”
Based on the hypothesis, the analyst projects that BTC slowly grinds up to about $135,000 by early to late 2023.
In the shorter term, the analyst doesn’t discount a tagging of new local lows. According to Dave the Wave, if Bitcoin ends up collapsing, then BTC can find support at the bottom of a logarithmic growth curve (LGC) down near $20,000 before rallying once again.
“If it were to play out like this, the LGC base would provide solid support…. and then off to the races again.”
For those long-term bullish on Bitcoin, the analyst says that a downward capitulation might be ideal in order to reset important indicators such as the moving average convergence divergence (MACD). Based on the trader’s analysis, the MACD, which identifies trends and momentum, is still signaling further short-term downside in the near term on all three major time frames.
“Monthly MACD – correction in macro bull
Weekly MACD – below the zero-line and rolling over
Daily MACD – also below the zero line
Even if there were an eventual washout may well be the best thing for the macro bull moving forward…”
Featured Image: Shutterstock/Mia Stendal