A eager crypto strategist says one Bitcoin (BTC) indicator is flashing the identical indicators that marked the 2015 and 2018 bear market bottoms.
Dave the Wave, the pseudonymous analyst who precisely predicted Bitcoin’s crash final yr, tells his 119,400 Twitter followers the transferring common convergence divergence (MACD) indicator on the weekly chart is at the moment hovering at file lows.
Merchants use the MACD to identify potential development reversals.
“Weekly Bitcoin MACD now at all-time lows [equal to previous]. Let’s see if we are able to get a strengthening/white histogram subsequent week…. or this.”
Dave the Wave additionally says he’s keeping track of the 200-week transferring common, which has marked the underside for BTC through the 2015 and 2018 bear cycles. Based on the crypto strategist, he now sees Bitcoin monitoring the 200-week transferring common as a result of precept of macro flattening.
“This precept of a macro flattening within the worth additionally means that the Bitcoin 200-week transferring common can be crossed sooner or later, ultimately turning into extra of a imply than a assist. Discover how excessive it’s within the channel.”
Dave the Wave says micro flattening relies on the concept BTC’s rising market cap will result in shallower corrections and diminished volatility, suggesting that giant property are much less risky as a result of quantity of capital required to make an affect percentage-wise.
Though Bitcoin is at the moment down over 70% from its all-time excessive of $69,000, Dave the Wave says BTC’s long-term outlook continues to be bullish primarily based on his logarithmic progress curve mannequin (LGC).
“Reminder: Bitcoin ain’t damaged on the premise of the LGC since 2018. What’s damaged is the too nice an expectation and sentiment, which is what the pragmatic investor needs to see when shopping for.”
At time of writing, Bitcoin is buying and selling for $20,235, up over 5% on the day.
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