Bitcoin’s price recently experienced a sharp decline in May 2021, catching the attention of trader Dave the Wave, who successfully predicted the collapse. According to Dave, Bitcoin could still see further downward movement before reversing course and embarking on a new rally towards new all-time highs. The trader believes that the cryptocurrency may revisit the “buy zone” of his logarithmic growth curve model before establishing a local bottom.
The logarithmic growth curve model utilized by Dave aims to forecast Bitcoin’s longer-term cycle lows and highs while filtering out short-term volatility. Drawing parallels to the price action in early 2017, Dave suggests that Bitcoin could undergo a 40% correction before initiating a parabolic surge. Should this scenario play out, Bitcoin’s price could potentially drop to $44,000, bringing it back to the trendline and the LGC buy zone.
Despite the potentially deep corrective move, Dave the Wave remains optimistic about Bitcoin’s prospects in the long run. He predicts that the drawdown could set Bitcoin up for a 400% rally towards his bull market price target of $220,000 by the end of 2025. The trader emphasizes the idea of “short-term pain, long-term gain,” implying that the current price fluctuations could ultimately benefit Bitcoin holders.
Dave acknowledges that volatility, both to the upside and the downside, is a common feature of a Bitcoin bull market. He notes that while the journey towards new all-time highs may be challenging, believers in Bitcoin must be prepared to endure fluctuations along the way. Despite the recent price movements, Bitcoin is still technically considered to be in a bull market, with the potential for significant gains in the future.
As of the time of writing, Bitcoin is trading at $57,685, showing a 2% increase for the day. Despite the recent price volatility, Dave the Wave’s analysis suggests that Bitcoin could be gearing up for a significant rally in the coming years. For the latest updates on Bitcoin and other cryptocurrencies, interested individuals can subscribe to email alerts or follow relevant sources on social media platforms like X, Facebook, and Telegram. By staying informed and prepared for potential market movements, traders and investors can navigate the volatile cryptocurrency landscape more effectively.
