Foretelling Bitcoin’s big correction in May 2021, a crypto analyst says there is a debate to be had for another major crash. Bitcoin analyst known as Dave the Wave is giving a series of warning signs that the leading crypto could be on a downward path to $25,000. Here are the details…
Analyst confirms Bitcoin crash with 5 metrics
You can find the best estimates of “Dave the Wave”, which we compiled as Somanews, here. The Bitcoin analyst is now confirming the drop to $25,000 with five different technical metrics. The analyst shares the following arguments for $25,000:
Welcoming the Gaussian Channel
Meeting 4-year MA (moving average)
Meeting LGC’s sub-channel (logarithmic growth curves)
Target measured for head and shoulders (on short-term charts)
Measured 50% true backtrace last parabolic rise.
Gaussian channels are a momentum indicator that can be used to identify the highs and lows of prices. A drop to $25,000 would also be a potential target if a head and shoulders pattern, a price structure used to identify a trend reversal, is played out. The analyst also takes a look at various times when Bitcoin was at the bottom of its logarithmic growth curves (LGC). He predicts that if BTC enters a long bear market, it may not find a bottom at $28,000 until 2023:
The *base* value of LGC in approximately 6 years: 2016 – 0.4000, 2019 – 4,000, 2022 – 21,000, 2023 – $28,000.
Finally, the analyst considers another scenario where Bitcoin (BTC) drops to around $28,000 in May 2022 before climbing above the six-digit mark:
Possible fractal with an exit to new ATHs in May next year. I’d say some will be surprised whether this is bullish or bearish.