A popular crypto analyst known for calling the Bitcoin May 2021 collapse thinks BTC is en route to 40x gains over the long term.
The pseudonymous analyst known as Dave the Wave tells his 127,500 Twitter followers that if Bitcoin matches gold’s market cap in the future, that will equal a surge of about 40x.
“How about a Bitcoin 40x? Beats a 10x buy.”
Bitcoin’s market cap currently sits at nearly $350 billion. Gold’s market cap currently sits around $11 trillion, according to CompaniesMarketCap.com. According to the crypto analyst, his massive target for BTC’s market cap could be achieved in a span of two decades.
“Over a 20 year period, works out to 17% compounded.”
Dave the Wave also notes Bitcoin’s moving average convergence divergence (MACD) could soon indicate whether BTC has hit market bottom.
“Weekly MACD crossed/printed. Recent local downtrend now equal to the previous run-up. A monthly close with a strengthening/contracting histogram will go some way towards significantly suggesting [if not confirming] a bottom.”
The MACD is a trend-based momentum indicator that depicts the relationship between two exponential moving averages of an asset and is used by traders to pinpoint reversals.
The analyst also says one metric indicates this bear market has already corrected further than the previous one.
“Seeing a few charts comparing nominal declines of bear markets with the current 74% decline seen as falling short of the previous 84% decline.
In real terms that measure real values on the logarithmic scale, this correction has actually corrected further – over 38%.”
Bitcoin is changing hands at $18,991 at time of writing, down over 2% in the past day.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Anton Domin/Natalia Siiatovskaia