A veteran trader who accurately predicted the May 2021 crypto collapse believes that Bitcoin (BTC) is on the verge of a massive breakout.
Pseudonymous trader Dave the Wave shares a chart with his 146,400 followers on the social media platform X that shows Bitcoin may be forming a similar pattern from the last cycle right before an explosive rally.
Source: Dave the Wave/X
Looking at his monthly chart, the trader suggests that Bitcoin will test a long-term diagonal support that could act as a launch pad for upward price action similar to what occurred in late 2020.
The analyst also shares a chart using his version of the logarithmic growth channel (LGC) curve, which aims to predict Bitcoin’s longer-term cycle lows and highs while filtering out shorter-term volatility.
According to the trader, his LGC model is suggesting that Bitcoin’s current market cycle remains in an uptrend.
“BTC bull markets climb a wall of worry… unless you’ve got the LGC model to go by.”
Source: Dave the Wave/X
Lastly, the analysts say that the king crypto’s one-year moving average is acting as a support level, which has historically lined up with big rallies.
“One-year BTC moving average reaching all-time highs while currently supporting price.”
Source: Dave the Wave/X
Bitcoin is trading for $58,168 at time of writing.
Generated Image: Midjourney
