The analyst who called the May 2021 Bitcoin (BTC) collapse and the double top pattern at $69,000 now thinks BTC’s chart looks optimistic.
Pseudonymous analyst Dave the Wave tells his 121,500 Twitter followers that Bitcoin’s weekly moving average convergence divergence (MACD) indicator is flashing a strong bottom signal.
“The worm has turned on the weekly MACD. Just coincidence… or technical analysis?”
Traders use the MACD to spot possible trend reversals. Looking at the trader’s chart, Bitcoin’s weekly MACD appears to be rising at a level that has marked the bottom of the 2015 and 2018 bear markets.
On top of a recovering MACD, Dave the Wave also says he’s optimistic about Bitcoin’s price chart as BTC is currently hovering at an area of long-term support.
“Why have some confidence in this Bitcoin chart? Realism and continuity…. as opposed to continually projecting a hyper-bull outlook onto the chart. Looking good.”
Looking at the daily chart, the crypto analyst says BTC is facing a pair of diagonal resistances.
“Currently meeting short-term resistance, which is not much resistance at all, in my opinion. It’s the longer-term second line of resistance that’s more significant, in my opinion.”
BTC is trading for $21,015 at time of writing. The top-ranked crypto asset by market cap is down more than 6% in the past 24 hours. Bitcoin also remains down nearly 70% from its all-time high, which it hit last November.
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