The crypto strategist who accurately predicted last year’s Bitcoin meltdown thinks that BTC is in the process of printing a bear market bottom.
Pseudonymous analyst Dave the Wave tells his 129,400 Twitter followers that Bitcoin is forming a classic reversal pattern on the daily chart.
[adinserter block="1"]“Adam and Eve bottom for Bitcoin anyone? ‘This chart pattern is formed when one sharp V-shaped first bottom low is made on high volume. This is the first Adam bottom. Then the price bounces back higher but later goes lower a second time to create a second cup shape as a second bottom that is the Eve on decreasing volatility and a tighter price range.”
The pattern is traditionally a bullish formation as it suggests that market participants are in the process of accumulating the asset while establishing and defending a price bottom. Based on Dave the Wave’s chart, it appears that the bottom for BTC is around the $18,000 level, with the confirmation of the pattern at around $25,000.
Looking at the weekly chart, Dave the Wave highlights that the logarithmic moving average convergence divergence (LMACD) indicator just flashed a bullish signal. The crypto analyst shares a chart showing how the weekly LMACD crossed and bounced at a level that marked the end of the 2018/2019 Bitcoin bear market.
The indicator is designed to reveal changes in an asset’s trend, strength and momentum.
Says Dave the Wave,
“The longer-term momentum indicator serves to correct reactive sentiment on the volatility of the day… and even the weekly unclosed candle.”
At time of writing, Bitcoin is changing hands for $20.720, down over 1.18% on the day.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/betibup33/David Sandron
