A Bitcoin analyst who correctly predicted the 2019 bottom has said that Bitcoin’s long-term outlook is “super bullish”. The analyst known as “Dave the Wave”, who usually tweets to a large following at Twitter gave this opinion earlier yesterday.
He also predicted that Bitcoin will reach new heights in the near future. His favourite indicator that he liked to quote was the MACD (Moving Averages Convergence Divergence) stats. He believes that the MACD figures are ripe for a cyclic move upwards that may result in new all-time highs for the cryptocurrency. But, he believes this will happen in the long-run and for the short-run nothing is clear at the moment.
Though a short term correction may well be on the cards, the longer term is looking super-bullish. Weekly MACD well situated for the cyclical move up as compared to last time…. pic.twitter.com/pKtWwF5ZIw
— dave the wave (@davthewave) May 30, 2020
Dave the Wave gained popularity among the cryptocurrency sector when amidst a bull move around $10,000 he predicted that Bitcoin will retrace to around $6400 which it did before moving upwards again in the anticipation of the halving. He also correctly predicted that Bitcoin would reach around $10,000 earlier this year before retracing back to the $6,000 region and that too proved to be his long-sightedness which increased his credibility among the analyst community.
Similar statements were also made by other analysts including the analytics firm Glassnode. According to this company, over 60% of the total cryptocurrency known to be in circulation hasn’t moved in over a year. This shows increasing HODLing behaviour which will further improve the chances of a long-term bullish cause. Back in 2017, the same level was also witnessed before the infamous rally that resulted in a price uptick towards the all-time high of $20,000.
However, Dave also brings caution to the winds as he believes a short-term drop might be on the cards. He believes that the market is now in a “confirmed descending triangle” and may look to test some recent short-term supports before rising again. However, many traders and analysts often say that to benefit from the drop as traders short.
Has anyone drawn a descending triangle yet? This would double up nicely with the .38 fib [just taking price into the 6K range], and triple up with the larger reverse head and shoulders drawn a month ago above. pic.twitter.com/sIXncYI0wM
— dave the wave (@davthewave) May 28, 2020
Bitcoin has been generally trending upwards overall for the last couple of months. The bullish setup has been boosted by the latest Bitcoin Halving that occurred on May 12, 2020 and reduced the generation of new Bitcoin to half. However, historical data has shown that Bitcoin drops a little before reaching all-time highs after a halving has occurred. The future is uncertain and only a constant watch on things can help traders and HODLers.
Image source: pixabay.com
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