An analyst with a track record of accurately predicting market movements in the crypto space has issued a warning regarding the current state of Bitcoin (BTC). Dave the Wave, a pseudonymous analyst, is cautioning traders that bearish signals are emerging, indicating that the ongoing consolidation phase for Bitcoin may soon lead to a downside move.
Dave the Wave, who commands a following of 148,300 on the social media platform X, is closely monitoring Bitcoin’s moving average convergence divergence (MACD) indicator on the weekly chart. The MACD is a popular tool used by traders to gauge an asset’s trend direction and identify potential entry and exit points.
Based on his analysis, Dave the Wave believes that Bitcoin’s MACD is on the verge of a reset following a bearish cross, signaling a potential correction that could see BTC drop below $90,000. Despite the current technical consolidation, the analyst remains optimistic about a push to new all-time highs later in the year.
In terms of downside targets, Dave the Wave points to Bitcoin’s daily chart and draws parallels with the price action seen in 2024 when Bitcoin surged to $74,000 before retracing below $50,000. The trader suggests that Bitcoin could dip to the 0.382 Fibonacci level at $80,000 before embarking on the final leg of its bull market rally.
While Dave the Wave holds a short to mid-term bearish outlook on Bitcoin, he maintains a bullish long-term stance on the digital asset. He previously predicted that the correction would be swiftly followed by a parabolic rally towards the $260,000 price level before the end of 2025.
As of the time of writing, Bitcoin is trading at $95,503. Traders and investors are advised to stay informed and monitor the market closely for potential developments. Stay updated on the latest price action by subscribing to email alerts and following reputable sources on social media platforms like X, Facebook, and Telegram.
In conclusion, while short-term volatility may be on the horizon for Bitcoin, the long-term prospects for the leading cryptocurrency remain positive according to Dave the Wave’s analysis. Keep a close eye on market developments and be prepared for potential shifts in the price of Bitcoin.