The popular trader who called the May 2021 crypto market crash is saying the Bitcoin (BTC) bottom is in now and a rally is imminent.
Pseudonymous trader Dave the Wave tells his 135,500 Twitter followers that a key indicator shows Bitcoin’s bottom was reached back in December 2022.
The trader looks at the monthly moving average convergence divergence (MACD), which aims to pinpoint reversals. He says MACD shows Bitcoin is setting the stage for a big rally, similar to the surge that began in April 2019.
He also looks at BTC’s monthly histogram, which traders use to spot changes in momentum and potential price reversals.
“This indicator [the MACD], along with the histogram, suggested the bottom was in a couple of months back [in December].”
Dave the Wave said in December, when Bitcoin was trading for around $16,400, that there was no need to panic about a price collapse.
“Now is not the time to panic [and those that are well-hedged will never panic come what may].”
The trader says the MACD indicator shows Bitcoin is forming a similar pattern as it did in April 2019, before a big surge.
“No guarantees, but you’d have to say the odds on this BTC long-term indicator have to be pretty good… Vertical lines give the similar contraction on the momentum-measuring histogram.”
Dave the Wave also says that Bitcoin’s price is heading up into the weekly Gaussian channel, signaling it is a good time to buy the king crypto. Gaussian channels are momentum indicators that can be used to identify price reversals.
“- BTC price coming up against the weekly Gaussian
– 23% retracement of the macro correction
– similar set-up on the weekly MACD
– price in the buy zone”
Bitcoin is worth $22,048 at time of writing.
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