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A trader who nailed the May 2021 Bitcoin collapse believes BTC could see more downward price action before igniting a renewed rally en route to new all-time highs.
Pseudonymous analyst Dave the Wave tells his 146,700 followers on the social media platform X that BTC may revisit the “buy zone” of his logarithmic growth curve (LGC) model before carving a local bottom.
The LGC model aims to predict Bitcoin’s longer-term cycle lows and highs while filtering out shorter-term volatility.
According to the analyst, BTC may be mirroring its early 2017 price action when it witnessed a 40% correction before launching a parabolic surge.
“A similar 40% drawdown just north of the 0.38 Fibonacci level would see $44,000…. with BTC price back to the trendline and the LGC buy zone.”
Source: Dave the Wave/X
Dave the Wave highlights that the deep corrective move will be beneficial for Bitcoin over the long haul. According to the trader, the drawdown would put BTC in a position to rally by 400% toward his bull market price target of $220,000 by the end of 2025.
“Short-term BTC pain, long-term gain.”
Source: Dave the Wave/X
The trader highlights that downside volatility is part and parcel of a Bitcoin bull market.
“BTC’ers got to take the good with the bad… still technically in a bull market… Though one might be confident of the final victory, there can also be a hammering along the way.”
At time of writing, Bitcoin is trading for $57,685, up over 2% on the day.
Generated Image: Midjourney
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