The closely tracked crypto strategist who nailed the May 2021 collapse of Bitcoin is examining the state of BTC to determine whether the macro bottom is in for the leading digital asset.
Pseudonymous analyst Dave the Wave tells his 117,000 Twitter followers that Bitcoin’s recent corrective move below $20,000 is reminiscent of BTC’s 2018 bear market capitulation.
[adinserter block="1"]“Recent capitulation event commensurate with 2018. Good possibility that that was it.”
Looking at Dave the Wave’s chart, it appears the magnitude of Bitcoin’s sharp pullback from $30,000 to its 2022 low of $17,760 is comparable to the 2018 sell-off event when the king crypto plummeted from $6,000 to around $3,000 and eventually bottomed out. In both instances, BTC lost over 44% of its value.
The crypto strategist also highlights that Bitcoin has consistently printed bear market bottoms close to the 0.382% Fibonacci level since 2012.
“What are the odds?”
At its current level, Dave the Wave says Bitcoin is trading at a prime opportunity zone for long-term bulls based on the logarithmic growth curve (LGC).
“Price deep into the long-term model of the ‘LGC buy zone now.’ Lower than my medium-term technical target. Investors looking to build a long-term position would do well, within reason, to buy a tranche here in my opinion, and based on the LGC model.”
The crypto strategist also predicts that Bitcoin will have a bullish July based on BTC’s tendency to bounce after bleeding for three consecutive months.
“Bitcoin due a green month next.”
At time of writing, Bitcoin is changing hands for $20,639, up over 16% from this year’s low.
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