Trader Who Called Bitcoin Collapse in May Suggests Another Massive BTC Correction Is Possible:
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A widely followed crypto analyst known for calling Bitcoin’s big correction in May of 2021 says there’s an argument to be made for another significant collapse.
The analyst known as Dave the Wave gives his 86,000 followers a collection of warning signs that Bitcoin may be en route to a drop as far as $25,000.
According to Dave the Wave, a drop down to $25,000 would match up with five different technical metrics.
“The arguments for 25K:
– Meeting the Gaussian Channel
– Meeting the 4 year MA (moving average)
– Meeting the lower channel of the LGC (logarithmic growth curves)
– Measured target for a head and shoulders [on shorter-term charts]
– Measured 50% real retracement of the recent parabolic spike.”
Gaussian channels are a momentum indicator that can be used to identify price tops and bottoms. According to the analyst, a drop down to $25,000 would also be a potential target if a head and shoulders pattern played out, which is a price structure used to identify a trend reversal.
The analyst takes a look at the various times that Bitcoin was at the very bottom of the logarithmic growth curves (LGC). He estimates that if BTC were to enter a long bear market, it may not find a bottom until 2023 at the price of $28,000.
“Value at the *base* of the LGC over the last 6 years or so:
2016 – 0.4K
2019 – 4K
2022 – 21K
2023 – 28K.”
Lastly, the analyst entertains another scenario whereby Bitcoin drops down to around $28,000 before launching up above the six-figure mark as soon as May of 2022.
“Possible fractal with a breakout to new ATHs as soon as May next year.
I’d say some would be stumped as to whether this is bullish or bearish.”
At time of writing, Bitcoin is trading at $47,802.
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