Crypto analyst who correctly foresaw the Bitcoin crash in May 2021, now foresees a significant downward correction for the cryptocurrency in the upcoming weeks.
What Happened: The pseudonymous analyst, Dave the Wave, predicts that Bitcoin BTC/USD might replicate last year’s pattern. In 2021, Bitcoin reached new highs around $74,000 before plummeting below $50,000. He anticipates the most severe BTC consolidation to take place by the end of March.
According to Dave the Wave’s chart, if BTC mimics last year’s price action, it could correct to the 0.382 Fibonacci level, which is approximately $81,000. The Fibonacci extension tool is often used by traders to pinpoint potential entry and exit points based on the Fibonacci ratio.
Despite predicting a Bitcoin pullback, the analyst maintains that BTC will eventually rally and could potentially hit as high as $260,000 by the end of the year.
Also Read: Massive $903 Million Bitcoin Transfer Stirs Crypto Market: What’s Happening?
This prediction is grounded in his logarithmic growth curve (LGC) model and the moving average convergence divergence (MACD) indicator.
The LGC is designed to forecast Bitcoin’s market cycle highs and lows, disregarding short-term volatility, while the MACD assists traders in identifying trend direction and potential reversal areas. At the time of writing, Bitcoin is trading for $96,909.
Why It Matters: The prediction of a significant downward correction for Bitcoin comes at a time when the cryptocurrency market is already facing volatility.
The anticipated correction could potentially impact the market, affecting investors and traders alike. The prediction also highlights the importance of tools like the Fibonacci extension and the LGC model in forecasting market trends, which could be crucial for traders in making informed decisions.
The potential rally predicted by Dave the Wave could also provide a glimmer of hope for investors amidst the anticipated downturn.
Read Next
Analyst Who Predicted May 2021 Crypto Crash Now Says Bitcoin Set To Surge To This Price By 2024
Don’t miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
