The trader who accurately called the 2021 crypto market crash says that Bitcoin (BTC) is likely gearing up for a sudden rally.
Pseudonymous analyst Dave the Wave tells his 143,500 followers on the social media platform X that Bitcoin’s price action on the monthly chart has touched upon a key support level on the Gaussian channel, which has historically signaled the start of a move higher.
Gaussian channels are momentum indicators that can be used to identify price reversals.
“Hitherto, the BTC monthly Gaussian channel has functioned as a springboard for price.”
Looking at his chart, the trader marks prior instances when Bitcoin hit the Gaussian channel on the monthly chart. Based on those instances, BTC tends to rally after respecting the technical indicator as support.
The trader also says that the start of 2024 may be igniting a Bitcoin surge as price action is forming a bullish ascending triangle pattern. On January 1st, Bitcoin crossed the $45,000 level for the first time since 2022.
“BTC: $44,000. New Year rocket?”
However, the trader notes that most people do not expect Bitcoin to quickly soar to new all-time highs.
“I don’t think many BTC observers are expecting anything like this [chart].”
Bitcoin is trading for $45,123 at time of writing, up 3.3% in the last 24 hours.
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