A market analyst who accurately predicted Bitcoin’s sharp decline in May 2021 now suggests that BTC could experience further downward movement before embarking on a significant upward trajectory towards new record highs.
Dave the Wave, known for his insights shared with 146,700 followers on X, outlines that Bitcoin might revisit the “buy zone” of his logarithmic growth curve (LGC) model before establishing a local bottom. This model is designed to forecast Bitcoin’s long-term cycle peaks and troughs while filtering out short-term market fluctuations.
Drawing parallels to Bitcoin’s price behavior in early 2017, when it underwent a 40% correction before launching into a rapid ascent, Dave predicts a similar scenario. He suggests that a 40% pullback, aligning just above the 0.38 Fibonacci level, could bring Bitcoin down to around $44,000, placing it back in line with the trendline and the LGC buy zone.
Dave the Wave emphasizes that despite short-term volatility, such corrective moves are beneficial for Bitcoin’s overall trajectory. He projects that this downturn could position BTC for a potential 400% rally, targeting a bullish price milestone of $220,000 by the end of 2025.
“Short-term pain for Bitcoin could yield long-term gains,” Dave concludes, underscoring that volatility is intrinsic to Bitcoin’s bullish market dynamics. “BTC enthusiasts must embrace both favorable and challenging phases. Technically, we remain in a bullish trend, although the journey may include significant fluctuations.”
As of the latest update, Bitcoin is trading at $57,685, reflecting a modest 2% increase for the day.
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