A prominent crypto analyst and trader who called the Bitcoin crash in May says that BTC could be on the verge of entering the next phase of its bear market.
The pseudonymous crypto strategist, known in the industry as Dave the Wave, tells his 71,900 Twitter followers that he sees a significant Bitcoin correction on the horizon.
ADVERTISEMENT
“The time Fibonacci [drawn from the start] allows for a commensurate amount of time for the correction as comparable to the parabolic spike. Another move of near magnitude to the earlier one would see price in the low $20,000 range. Though not certain, certainly conceivable.”
According to the trader’s chart, Bitcoin appears to be mirroring its price action from December 2020 to May 2021, where BTC rose from $20,000 to above $60,000 – before igniting a 50% correction to $30,000. Dave the Wave says that a similar correction could drive Bitcoin down to $20,000 before the end of the year.
Despite Bitcoin’s recent strength, Dave the Wave says that BTC remains in a downtrend as it continues to trade below a diagonal resistance in the long-term timeframe.
“Monthly chart has yet to close above the line of resistance as drawn for a good few months now. Simples.”
Although Dave the Wave is calling for another Bitcoin correction, fellow crypto analyst PlanB sees BTC rising to $63,000 in the coming months in his worst-case scenario.
“September $43,000 floor/worst case is not a typo. The small dip is caused by the data. However, it is a worst-case estimate. My base case is, of course, the S2F estimate. Also, October $63,000 worst case/floor is more in line again. So September is just a data blip. Nothing to worry about.”
PlanB relies on his popular stock-to-flow model, which predicts price by measuring existing supply against production rate.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
ADVERTISEMENT
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 loses 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.
Featured Image: Shutterstock/IM_VISUALS
