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Pseudonymous crypto trader Dave the Wave who recently warned about the upcoming bearish price action of Bitcoin prior to the May crash and correctly predicted the digital asset dropping down to $6,400 from $11,400 in 2019 has a new price prediction for the leading cryptocurrency.
Bitcoin Could Drop Down to $16,000: Dave The Wave
According to the mysterious crypto trader Dave the Wave who had accurately predicted many of the price actions of the flagship cryptocurrency, BTC has entered into a new round of bearish phase.
In his latest blog post, the top analyst argued that Bitcoin’s price action evolves in the form of cycles that break out into a “random set of mini manias and subsequent corrections, ones that increasingly lessen in volatility, and in turn lead to price discovery.”
With the digital asset's recent rejection from the resistance zone of $49,000, the trader predicted that Bitcoin could drop down to the 200-week moving average which sits at $16,000 in the coming months.
Bitcoin started the week on a bearish note after falling 10% since the market opened falling from $47,250 to $42,423.
Into the Next Bearish Phase
Bitcoin has lost as much as 10% since the start of the week. It was last down by more than 7% at $43,790.25. Besides the leading cryptocurrency, the broader crypto market was in the reds too, with Ethereum being down 7.2% to $2,983.
Not only that, the number of new daily addresses joining the BTC network has made a series of lower highs over the last two weeks. For instance, during the peak high on Sept. 16 around 436,000 new Bitcoin addresses were created compared to the 463,000 new addresses that were created on September 2.
Bitcoin traded above $50,000 earlier this month, topping a key psychological resistance level for traders. However, the cryptocurrency is below its 50-day moving average of $46,514, which analysts/traders look for a change of scenario to get a sense of the intermediate-term trend.