A renowned Bitcoin trader believes the recent price drop is beneficial for the cryptocurrency’s long-term uptrend.
Consolidation and Renewed Strength
According to Dave the Wave, Bitcoin’s move below $60,000 has halted the possibility of a parabolic surge. He suggests that further consolidation will provide a solid foundation for a stronger surge later this year.
“It’s positive that Bitcoin isn’t going parabolic because it allows for stable technical development,” Dave the Wave said. “Consolidation now will lead to renewed strength in the fourth quarter, resulting in higher prices than if the surge came earlier.”
Fibonacci Support and Buy Zone
Dave the Wave predicts that Bitcoin could fall to $50,000, where it would find support at the 0.382 Fibonacci retracement level. This would bring BTC back into the “buy zone” of his logarithmic growth curve (LGC) model, which anticipates Bitcoin’s long-term highs and lows.
“This drawdown would position Bitcoin for renewed upside strength,” Dave the Wave added.
Current Market Conditions
At the time of writing, Bitcoin is trading at $60,357, up from its 24-hour low of $58,443.
