An analyst who called the 2021 crypto market meltdown says that a key indicator is now flashing bullish for Bitcoin (BTC).
The pseudonymous trader known as Dave the Wave tells his 153,800 followers on the social media platform X that the Moving Average Convergence Divergence (MACD) indicator suggests Bitcoin’s uptrend may continue.
The MACD is used to determine the direction, momentum and duration of a trend or to identify potential buy and sell signals.
“Longer-term monthly BTC MACD turning upward again.”
Source: Dave the Wave/X
Looking at his monthly chart, the MACD histogram was starting to weaken after surging, but has just begun to trend upward again.
Dave the Wave also says that BTC may soar to $160,000 in just a couple of months, a more than 47% increase from its current value.
“The BTC microcosm of the macro.”
Source: Dave the Wave/X
Looking at his chart, the analyst suggests Bitcoin is trading in the middle of a range with a lower bound of $75,000 and an upper bound of $160,000.
Lastly, he says that if Bitcoin remains in the bullish trend, a market correction could see the flagship crypto asset retest $100,000 as support, stopping short of a more severe decline.
“If the fractal held, a very weak partial right shoulder would form, not a full one – $100,000, not $90,000.”
Bitcoin is trading for $108,832 at time of writing, down 1.4% in the last 24 hours.
Generated Image: Midjourney
