Analyst Who Nailed 2021 Bitcoin Top Predicts New Leg Up for Bitcoin – But There’s a Catch

An analyst with a history of making timely Bitcoin calls believes that $BTC is gearing up for a huge upside burst despite struggling to clear the $110,000 level.

Pseudonymous analyst Dave the Wave tells his 153,800 followers on the social media platform X that he’s keeping a close watch on Bitcoin’s moving average convergence divergence (MACD) indicator on the weekly chart.

The MACD is a technical indicator that tracks the convergence and divergence of moving averages to gauge an asset’s momentum and trend direction while pinpointing potential reversal areas.

According to Dave the Wave, $BTC’s weekly MACD suggests that Bitcoin is bullish and is primed to hit a diagonal resistance that has marked market tops since 2012.

“On the basis of the weekly $BTC MACD extension, you’d expect another push up.”

Source: Dave the Wave/X

Looking at the trader’s chart, he seems to suggest that the MACD will rise to the diagonal resistance by the end of the year, just as $BTC rallies to $160,000.

Zooming out, Dave the Wave says the monthly time frame supports his long-term bullish outlook on $BTC.

“Longer-term monthly $BTC MACD turning upward again…”

Source: Dave the Wave/X

But in the short term, the analyst thinks that Bitcoin will slide to around $98,000, where it could potentially print a local bottom before sparking new rallies.

“Would it be such a terrible thing to see $BTC price consolidate to just under $100,000 before moving up again? Surely, only snowflakes would think so…”

Source: Dave the Wave/X

At time of writing, Bitcoin is trading for $104,348.

Generated Image: Midjourney