dailyhodl.com
A trader who nailed the May 2021 Bitcoin collapse believes BTC could see more downward price action before igniting a renewed rally en route to new all-time highs.
Pseudonymous analyst Dave the Wave tells his 146,700 followers on the social media platform X that BTC may revisit the “buy zone” of his logarithmic growth curve (LGC) model before carving a local bottom.
The LGC model aims to predict Bitcoin’s longer-term cycle lows and highs while filtering out shorter-term volatility.
According to the analyst, BTC may be mirroring its early 2017 price action when it witnessed a 40% correction before launching a parabolic surge.
“A similar 40% drawdown just north of the 0.38 Fibonacci level would see $44,000…. with BTC price back to the trendline and the LGC buy zone.”
Dave the Wave highlights that the deep corrective move will be beneficial for Bitcoin over the long haul. According to the trader, the drawdown would put BTC in a position to rally by 400% toward his bull market price target of $220,000 by the end of 2025.
“Short-term BTC pain, long-term gain.”
The trader highlights that downside volatility is part and parcel of a Bitcoin bull market.
“BTC’ers got to take the good with the bad… still technically in a bull market… Though one might be confident of the final victory, there can also be a hammering along the way.”
At time of writing, Bitcoin is trading for $57,685, up over 2% on the day.
Generated Image: Midjourney