The trader who accurately called the May 2021 crypto market crash predicts a price pattern for Bitcoin (BTC) in the current market cycle using a historical reliability model.
Pseudonymous analyst Dave the Wave tells from his 145,100 followers on the social media platform
The LGC is an investment model that aims to predict the highs and lows of Bitcoin’s market cycle while filtering out short-term volatility.
According to Dave the Wave, it makes much more sense for Bitcoin to continue trading within the LGC in the long term, rather than invalidating the model that has stood the test of time thus far.
“The speculators in this area can be broadly divided into those who believe in diminishing returns and those who do not. Adherents of the DM (diminishing marginal returns) principle generally agree that price will follow the channel outlined in the first chart.
Those who reject the principle see price violating it, as in the second chart, and possibly breaking to either side. The first seems much more rational to me, because at least it has something empirical and historical going on.”
The analyst first shares a chart suggesting that BTC will print higher highs and higher lows over the years as it trades within the LGC.
Dave the Wave’s second chart shows BTC breaking above the LGC’s upper bound before witnessing a steep corrective move that sends the crypto king below the model’s lower bound.
The trader also uses the Fibonacci extensions to to predict a price target of $180,000 for BTC in 2025. Fibonacci extensions are used in technical analysis to estimate profit targets and price declines. They are based on Fibonacci ratios.
“BTC Fib Extension Hits Target of $180,000.”
Bitcoin is trading at $51,966 at the time of writing, up 4% in the past seven days.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney
