Veteran trader Dave the Wave says Bitcoin (BTC) is at a turning point where it may either ignite a parabolic impulse to the upside or finally see a significant correction.
The pseudonymous analyst tells his 145,000 followers on the social media platform X that Bitcoin is potentially making a break for $65,000, but could drop to $41,000 if the attempt fails.
“Technical short-term target of $65,000 if price can break out of the channel, target of $41,000 if it cannot.
Your move BTC.”
Source: Dave the Wave/X
Looking at his chart, Dave the Wave thinks BTC just broke out of a long-term regression band and is subsequently about to break out of a shorter-term overlapping ascending channel. If the breakout fails, the analyst’s downside target of $41,000 is at the bottom of the ascending channel.
Dave the Wave says that Bitcoin’s moving average convergence divergence (MACD) could provide a clue as to whether or not BTC could suddenly go parabolic.
The MACD is a momentum indicator that can suggest when trends are about to begin or reverse. According to the trader, once the MACD crosses above a certain level, BTC explodes in a final upward impulse before exhausting itself, as it did in January 2021 and December 2017.
Currently, Bitcoin’s MACD is roughly a week away from potentially going into Dave the Wave’s “parabolic strength” zone.
“The daily BTC MACD is a clue.
The difference between technical and parabolic strength.”
Source: Dave the Wave/X
At time of writing, Bitcoin is trading at $51,662.
Generated Image: DALLE3
