A well-respected trader known for accurately predicting the May 2021 Bitcoin crash has issued a warning about a potential correction.
Trendline Break
According to Dave the Wave, a pseudonymous analyst with 146,000 followers on X, Bitcoin’s bull market trendline is breaking, indicating a potential move to the downside.
Support Levels
The analyst predicts that Bitcoin could drop to the 0.38 Fibonacci level, around $50,000. This could lead to a period of consolidation before a potential rally in the fourth quarter.
Monthly Chart Confirmation
Dave the Wave is watching the monthly chart for confirmation of a trend reversal. He believes that a change in trend could take time to materialize.
Long-Term Prediction
Using his logarithmic growth channel (LGC) curve, the analyst predicts a market top for Bitcoin in December 2025. He suggests that Bitcoin could reach above $300,000 by the end of that year.
Current Market Conditions
At the time of writing, Bitcoin is trading at $62,249, down over 3% on the day. The analyst’s warning serves as a reminder for investors to be cautious and manage their risk accordingly.
