dailyhodl.com
An analyst known for correctly timing the 2021 crypto crash is warning that Bitcoin ($BTC) is getting close to witnessing a waterfall event.
Pseudonymous analyst Dave the Wave tells his 148,300 followers on the social media platform X that Bitcoin is currently testing whether support at around $90,000 will hold.
According to the crypto strategist, he expects Bitcoin to mimic its late 2024 price action when it plunged to the 0.382 Fibonacci level before sparking a massive move up.
“As expected $BTC local lows being re-tested… I haven’t seen that larger washout yet into the lower Fibonacci level that I’m also looking for.”
Looking at the trader’s chart, he seems to predict that $BTC will fall to around $80,000.
Zooming out, Dave the Wave says he’s keeping a close watch on the moving average convergence divergence (MACD) indicator on the weekly chart. The MACD is a widely used indicator to identify an asset’s current trend.
According to the trader, $BTC’s MACD on the weekly timeframe will hit the zero line level to reset en route to tapping the 0.382 Fibonacci level.
“Technically superb $BTC price action in this current bull market.
Something like an April low on the basis of this.”
But while Dave the Wave is bearish on the prospects of $BTC in the coming months, he believes that the deep drawdown will set the stage for a Bitcoin rally to around $180,000 by the end of the year.
“Why complicate things?”
At time of writing, Bitcoin is trading $91,529.