An analyst who called the Bitcoin May 2021 collapse is laying out possible scenarios for BTC, including a dramatic capitulation event.
The pseudonymous analyst known as Dave the Wave tells his 98,000 Twitter followers that Bitcoin is likely headed down below the $25,000 range.
For references, he uses the May 2021 and November 2021 corrective periods as examples of what BTC traders could see next.
“If we get a Bitcoin move down comparable to the previous two, looking at the $25,000 region.”
The analyst also points out that despite the bearish price action in recent weeks, BTC still has considerable downside as suggested by its 200-week moving average (MA). Dave the Wave says that Bitcoin is still well above its 200-week moving average, and that its 20-week moving average historically tends to revisit the 200-week MA before a bear market is over.
“One for the bullish bears and the bearish bulls.
Note that the 200-week MA is quite high [above the previous peak]…. while the 20-week MA is moving down toward it…”
While the analyst says that an extended downtrend is the most likely scenario for Bitcoin, he notes that zooming out, BTC is still in a powerful long-term uptrend.
“A few of the more optimistic theories may have become casualties as the price of Bitcoin continues to unfold in the market, but the macro bull remains… not to mention the [logarithmic growth channel].”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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