An analyst known for correctly timing the 2021 crypto crash is warning that Bitcoin (BTC) is getting close to witnessing a waterfall event.
Pseudonymous analyst Dave the Wave tells his 148,300 followers on the social media platform X that Bitcoin is currently testing whether support at around $90,000 will hold.
According to the crypto strategist, he expects Bitcoin to mimic its late 2024 price action when it plunged to the 0.382 Fibonacci level before sparking a massive move up.
“As expected BTC local lows being re-tested… I haven’t seen that larger washout yet into the lower Fibonacci level that I’m also looking for.”
Source: Dave the Wave/X
Looking at the trader’s chart, he seems to predict that BTC will fall to around $80,000.
Zooming out, Dave the Wave says he’s keeping a close watch on the moving average convergence divergence (MACD) indicator on the weekly chart. The MACD is a widely used indicator to identify an asset’s current trend.
According to the trader, BTC’s MACD on the weekly timeframe will hit the zero line level to reset en route to tapping the 0.382 Fibonacci level.
“Technically superb BTC price action in this current bull market.
Something like an April low on the basis of this.”
Source: Dave the Wave/X
But while Dave the Wave is bearish on the prospects of BTC in the coming months, he believes that the deep drawdown will set the stage for a Bitcoin rally to around $180,000 by the end of the year.
“Why complicate things?”
Source: Dave the Wave/X
At time of writing, Bitcoin is trading $91,529.
