Bitcoin on the Verge of Major Breakout, According to Trader Who Accurately Predicted May 2021 Crash
A seasoned trader who accurately forecasted the crypto crash in May 2021 believes that Bitcoin (BTC) is on the cusp of a significant breakout. Going by the pseudonym Dave the Wave, this trader shares a chart on X, a popular social media platform, illustrating that Bitcoin may be forming a pattern similar to the previous cycle just before a powerful rally.
Dave the Wave looks at a monthly chart and speculates that Bitcoin will soon test a long-term diagonal support level, which could serve as a launchpad for an upward price movement resembling what occurred in late 2020. Additionally, the analyst utilizes his logarithmic growth channel (LGC) curve to predict Bitcoin’s longer-term cycle lows and highs while filtering out short-term volatility.
According to Dave the Wave, his LGC model indicates that Bitcoin’s current market cycle is still in an upward trend. He emphasizes that BTC bull markets typically encounter concerns along the way, except if one relies on the LGC model.
Lastly, the analyst points out that Bitcoin’s one-year moving average is acting as a support level, historically aligning with significant rallies. The fact that the one-year BTC moving average is reaching all-time highs while currently supporting the price further bolsters the case for a breakout.
As of the time of writing, Bitcoin is trading at $58,168.