Veteran trader Dave the Wave says Bitcoin (BTC) is at an inflection point where it could either ignite a parabolic impulse to the upside or ultimately see a significant correction.
The pseudonymous analyst tells are 145,000 followers on social media platform
“Short-term technical target of $65,000 if price can break out of the channel, $41,000 target if it fails.
Your move BTC.”
Looking at his chart, Dave the Wave thinks that BTC has just broken out of a long-term regression band and is then about to break out of a shorter-term overlapping ascending channel. If the breakout fails, the analyst’s downside target of $41,000 will be at the bottom of the ascending channel.
Dave the Golf say that Bitcoin’s moving average convergence divergence (MACD) could provide a clue as to whether BTC could suddenly go parabolic.
The MACD is a momentum indicator that can indicate when trends are about to start or reverse. According to the trader, once the MACD crosses a certain level, BTC explodes in a final upward momentum before exhausting itself, as it did in January 2021 and December 2017.
Currently, Bitcoin’s MACD is about a week away from potentially entering Dave the Wave’s “parabolic power” zone.
“The daily BTC MACD is a clue.
The difference between technical and parabolic force.”
At the time of writing, Bitcoin is trading at $51,662.
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