A trader known for making timely calls in the crypto space is warning that Bitcoin (BTC) may undergo a severe market correction within the next few months.
Pseudonymous analyst Dave the Wave tells his 139,400 X followers that Bitcoin may collapse to the lower bound of its logarithmic growth curve (LGC) before the end of the year.
The LGC aims to estimate Bitcoin’s long-term highs and lows throughout its lifetime while ignoring short-term volatility.
Says the analyst,
“In the course of eight months, BTC price has done a 2x from the bottom to the top of the LGC buy zone.
Would it be such a terrible thing IF price consolidated 38% of that move back to the base over the next few months?
I mean, it would still be in the buy zone for longer-term investors.”
Looking at the analyst’s chart, he seems to predict the 38% drop from this year’s high could put Bitcoin at about $24,000 around December 2023.
According to the trader, the LGC model shows Bitcoin has reached a critical crossroads between resistance and support levels at its current value, indicating a significant price move is on the horizon.
“X marks the spot.
Your move BTC.
Interesting that both lines of support and resistance [shorter term] meet the upper and lower lines of the LGC buy zone on the same timeline.”
He also says that the recent sideways trading of Bitcoin is a telling sign that the crypto king is evolving as an asset.
“The good news about all this waiting due to an increasing stabilization of price [from the macro perspective] is that BTC is becoming less volatile as it matures on its path toward eventual price discovery.”
Bitcoin is trading for $29,571 at time of writing, up 0.7% in the last 24 hours.
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