A trader known for his timely calls in the crypto space is warning that Bitcoin (BTC) could face a serious market correction in the coming months.
Pseudonymous analyst Dave the Wave tells are 139,400 X followers that Bitcoin may collapse to the lower end of its logarithmic growth curve (LGC) before the end of the year.
The LGC aims to estimate Bitcoin’s highs and lows throughout its lifetime, while ignoring short-term volatility.
says the analyst
“Over the course of eight months, BTC price has done a 2x move from the bottom to the top of the LGC buy zone.
Would it be so bad IF the price consolidates 38% of that to the base in the coming months?
I mean, it would still be in the buy zone for long-term investors.
Looking at the analyst’s chart, he seems to predict that the 38% drop from this year’s high could take Bitcoin to around $24,000 by December 2023.
According to the trader, it concerns the LGC model shows Bitcoin has reached a critical cross point between resistance and support levels at its current value, indicating that significant price movement is on the horizon.
“X marks the spot.
Your move BTC.
Interesting that both support lines and resistance [shorter term] meet the top and bottom lines of the LGC buy zone on the same timeline.
He too say that Bitcoin’s recent sideways trading is a telling sign that the crypto king is evolving as an asset.
“The good news about all that waiting due to an increasing stabilization of the price [from the macro perspective] is that BTC will become less volatile as it matures towards eventual price discovery.”
Bitcoin is trading at $29,571 at the time of writing, up 0.7% in the last 24 hours.
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