Get the scoop on finance - sign up for mobile alerts
Categories: Bitcoin
| On
February 14, 2023

Trader Who Called May 2021 Crypto Crash Says Bitcoin Bottom In, 2019 Style Setup in Play

By Daily Hodl Staff

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.

ADVERTISEMENT

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.

ADVERTISEMENT

“Now is not the time to panic [and those that are well-hedged will never panic come what may].”

Source: DavetheWave/Twitter

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.”

Source: DavetheWave/Twitter

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

ADVERTISEMENT

– 23% retracement of the macro correction

– similar set-up on the weekly MACD

– price in the buy zone”

Source: DavetheWave/Twitter

Bitcoin is worth $22,048 at time of writing.

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
&nbsp
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 cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney