Bitcoin trader Dave the Wave predicts that Bitcoin won’t experience a fakeout rally similar to 2019 in the current market cycle. He attributes the 2019 fakeout rally to a sudden breakout after only spending a few months in the “buy zone,” which is his own version of logarithmic growth curves that filters out short-term volatility. However, Dave the Wave believes that this time is different as Bitcoin has already spent over a year in the “buy zone,” setting the stage for a sustained bull rally. He supports his thesis by looking at the monthly moving average convergence divergence (MACD), which suggests a risk-managed buy for investors.
Dave the Wave’s chart indicates that Bitcoin is currently in bearish territory. However, he notes that the MACD line is nearing the zero line from above, potentially signaling a bullish reversal in the near future. He also highlights that the LGC model, which he has been using since 2018, has been a reliable indicator of Bitcoin’s price action, accurately projecting price ranges and the best times to buy. In a separate prediction, Dave the Wave previously forecasted a bull rally for Bitcoin in 2024.
As of now, Bitcoin is trading at $26,413, experiencing a 0.8% increase in the past 24 hours. Dave the Wave’s analysis suggests that despite the current bearish sentiment, a bullish reversal could be on the horizon, indicating potential investment opportunities for Bitcoin traders.