An analyst who accurately predicted the crypto meltdown three years ago warns that Bitcoin (BTC) is showing bearish signals, suggesting that the current consolidation may resolve to the downside.
Pseudonymous analyst Dave the Wave tells his 148,300 followers on the social media platform X that he’s keeping an eye on Bitcoin’s moving average convergence divergence (MACD) indicator on the weekly chart.
Traders use the MACD to identify an asset’s trend and spot potential entry and exit points.
According to the trader, Bitcoin’s MACD looks poised for a reset after a bearish cross, suggesting that BTC is close to witnessing a correction and plunging below $90,000.
“BTC weekly MACD re-set to the zero-line underway.
Technical consolidation and the likelihood of a push to new highs later in the year.”
As for his downside target for Bitcoin, Dave the Wave looks at BTC’s daily chart and says that the crypto asset appears to be following in the footsteps of its 2024 price action when the flagship digital asset soared to a high of $74,000 before retracing below $50,000.
“The BTC rollercoaster.”
Looking at the trader’s chart, he seems to suggest that Bitcoin will fall to the 0.382 Fibonacci level at $80,000 before kicking off the final leg of its bull market.
The Fibonacci extension tool allows traders to spot potential entry and exit levels based on the Fibonacci ratio.
While Dave the Wave is short to mid-term bearish on Bitcoin, he remains a long-term BTC bull. Earlier this month, the trader predicted that the correction would be swiftly followed by a parabolic rally toward the $260,000 price level before 2025 expires.
At time of writing, Bitcoin is trading for $95,503.
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Generated Image: Midjourney
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