A trader who weathered Bitcoin’s May 2021 collapse believes BTC could see more downside price action before sparking a renewed rally on its way to new all-time highs.
Pseudonymous analyst Dave the Wave tells his 146,700 followers on social media platform
The LGC model aims to predict the longer-term lows and highs of the Bitcoin cycle while filtering out shorter-term volatility.
According to the analyst, BTC may be reflecting the price action of early 2017 when it witnessed a 40% correction before launching a parabolic wave.
“A similar 40% decline just north of the Fibonacci level of 0.38 would yield $44,000…. with the BTC price back to the trendline and the LGC buy zone.”
Dave the Wave emphasizes that the deep corrective move will be beneficial for Bitcoin in the long run. According to the trader, the pullback would put BTC in a position to rise 400% towards its bull market price target of $220,000 by the end of 2025.
“BTC short-term pain, long-term gain.”
The trader highlights that downward volatility is part and package of a Bitcoin bull market.
“BTCers have to take the good with the bad…technically still in a bull market…While you may be confident in the final victory, there may be hammering along the way.”
At the time of writing, Bitcoin is trading at $57,685, up more than 2% on the day.
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Generated image: Midjourney