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Bitcoin Could Be Entering New Bullish Phase, According to Analyst Who Called May 2021 BTC Crash

source-logo  dailyhodl.com 26 March 2023 11:28, UTC

Closely followed analyst Dave the Wave says evidence points toward Bitcoin (BTC) entering into a new bullish chapter as crucial long-term indicators flip green.

The pseudonymous analyst tells his 137,000 Twitter followers that if he were a “betting man,” he would take notice of Bitcoin’s weekly moving average convergence divergence (MACD).

The MACD aims to identify trend reversals by recording the convergence or divergence of a given set of moving averages. Dave the Wave marks six times in BTC’s history, including right now, where the MACD turned bullish right before significant multi-week or multi-month rallies.

“The weekly BTC MACD.

If I were a betting man….”

Source: Dave the Wave/Twitter

Looking at the longer term, the popular analyst says that another way to look at Bitcoin’s price performance is to price it in gold, rather than in US dollars. He posits that over the course of about 20 years, BTC could reach the same market cap of gold, implying about a 22X price increase.

“Mapping BTC against USD to give the LGC is fine as long as prices move exponentially.

But strictly speaking, the LGC will only really plateau against XAU [gold], in my opinion…

A 22x would give a BTC market cap of 12 trillion USD [in 2023 terms]. This is near equivalent to the current market cap of gold – $13 trillion.

Of course, in the 2040s it would be priced in a different currency [even if USD in name].

Best to just say 1 BTC could equal 400 ounces [of gold].”

Source: Dave the Wave/Twitter

At time of writing, Bitcoin is trading at $27,727, mostly sideways over the past seven days.

Generated Image: Midjourney