A crypto strategist who accurately called Bitcoin’s May 2021 meltdown is now predicting a potential rally that could send BTC toward its long-term diagonal resistance.
Pseudonymous analyst Dave the Wave tells his 112,100 Twitter followers Bitcoin is trading within an ascending channel and potentially gearing up for a short-term rally to his target.
“Bitcoin shorter term.”
According to the crypto strategist, his target of $39,547 is “speculative” and is only valid as long as the channel holds.
Although Dave the Wave remains cautious, he says that traders who believe Bitcoin will revisit its 2017 cycle high of $20,000 should start thinking about risk management considering BTC is down big from its all-time high.
“No one last year conceived of Bitcoin price falling to the previous all-time high. And yet now clarion calls abound. Is it possible? Sure, but people need to balance the [renewed] risk to the upside against the risk to the downside…
Simply amazed that I am now more bullish than the ‘once were hyper-bulls,’ who have turned bearish, or neutral at best, since the recent capitulation.”
The crypto strategist is also entertaining the possibility the bear market bottom is already in.
“Equally, the low could already have been put in. Shortest-term volatility is always the hardest to predict as near random. It is the longer-term indicators, as per the monthly chart, that gives the most reliability in technical analysis.”
Looking at the long-term timeframe, Dave the Wave shows how Bitcoin has always bottomed out after touching the four-year moving average on the monthly chart.
“Support on the four-year moving average.”
At time of writing, Bitcoin is trading for $29,807 while the four-year moving average on the monthly chart is hovering above $22,000.
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Original Source :dailyhodl.com
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