A popular crypto analyst who called the May 2021 Bitcoin (BTC) collapse says a historically reliable indicator is flashing bullish for the digital asset.
Pseudonymous analyst Dave the Wave tells his 129,100 Twitter followers that the moving average convergence divergence indicator (MACD) suggests Bitcoin is coming out of the months-long bear market.
”And there you have it ladies and gentlemen, a momentum [and momentous] shift on the monthly MACD. No guarantee of certainty, but certainly a strong indication of the Bitcoin macro turnaround… given the previous historical trend.”
The MACD is a trend-based momentum indicator that depicts the relationship between two moving averages of an asset and is used by traders to pinpoint reversals. At time of writing, Bitcoin is trading hands at $20,125, hours after climbing to a high of $20,800 on the day the US Federal Reserve announced another big interest rate hike.
Dave the Wave also points to his logarithmic growth curve (LGC) to indicate a price base has formed or is forming for Bitcoin in the $20,600 price range. He says the LGC has proven a reliable predictor since 2018.
“Momentum on the shorter-term weekly chart also supportive of the monthly chart. Factor in the LGC model, the curves of which have been on target since 2018, and you’ve got a reasonable argument for a base forming/ formed.”
The analyst says that buzz about Bitcoin is not at the level during the last bull market, but that makes it the right time to invest.
“Remember the hype? From the contrarian perspective, now is the time to buy when the hype is flaaaat.”
If BTC bounces to the next arc in the growth chart, Dave the Wave outlines BTC reaching $38,000 in August of next year.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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