An analyst with a history of making timely Bitcoin calls believes that BTC is gearing up for a huge upside burst despite struggling to clear the $110,000 level.
Pseudonymous analyst Dave the Wave tells his 153,800 followers on the social media platform X that he’s keeping a close watch on Bitcoin’s moving average convergence divergence (MACD) indicator on the weekly chart.
The MACD is a technical indicator that tracks the convergence and divergence of moving averages to gauge an asset’s momentum and trend direction while pinpointing potential reversal areas.
According to Dave the Wave, BTC’s weekly MACD suggests that Bitcoin is bullish and is primed to hit a diagonal resistance that has marked market tops since 2012.
“On the basis of the weekly BTC MACD extension, you’d expect another push up.”
Source: Dave the Wave/X
Looking at the trader’s chart, he seems to suggest that the MACD will rise to the diagonal resistance by the end of the year, just as BTC rallies to $160,000.
Zooming out, Dave the Wave says the monthly time frame supports his long-term bullish outlook on BTC.
“Longer-term monthly BTC MACD turning upward again…”
Source: Dave the Wave/X
But in the short term, the analyst thinks that Bitcoin will slide to around $98,000, where it could potentially print a local bottom before sparking new rallies.
“Would it be such a terrible thing to see BTC price consolidate to just under $100,000 before moving up again? Surely, only snowflakes would think so…”
Source: Dave the Wave/X
At time of writing, Bitcoin is trading for $104,348.
Generated Image: Midjourney
