A trader who weathered Bitcoin’s May 2021 collapse says BTC may be gearing up to unleash explosive price action next month.
Pseudonymous analyst Dave the Wave shares with his 146,700 followers on social media platform
The analyst’s chart also suggests that Bitcoin appears to be trading in a triangle pattern while consolidating within a wide range.
“BTC 4th quarter fireworks?”
The analyst adds that Bitcoin is likely to trade above its recent lows at $52,000, with a key moving average acting as support.
“BTC One-Year Moving Average Is Rising Quickly…”
Dave the Wave also places the current multi-month correction in a different perspective. Using the Fibonacci retracement tool, the analyst points out that Bitcoin has only fallen to the Fibonacci level of 0.236 so far, despite last month’s plunge below $50,000.
Traders typically see tremendous strength when an asset respects the Fibonacci level of 0.236 as support, as the setup suggests that buyers are willing to enter without waiting for the price to move lower again.
Says the merchant,
“Correction, consolidation maybe… but hardly a bear market.”
Earlier this month, the analyst shared a chart suggesting that Bitcoin could reflect its price action over the past cycle. The chart also suggests that Bitcoin is about to breakout based on the timeline of the 2020 cycle.
“BTC.”
At the time of writing, Bitcoin is worth $56,826, up more than 3% on the day itself.
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Generated image: Midjourney