Analyst Calling May 2021 Bitcoin Crash Says BTC Can Absorb The Most Terrible News
The crypto strategist who accurately predicted Bitcoin’s collapse last year believes BTC can handle even the most adverse developments.
Pseudonymous analyst Dave the Wave tells his 130,200 Twitter followers that crypto markets are facing a major loss of public credibility after crypto exchange FTX filed for bankruptcy.
However, the analyst also reminds his followers that Bitcoin has managed to stay on a long-term uptrend even in the face of death knells in the past.
“One positive is the speculative instinct [for good and bad and ugly] have short memories and tend to dominate in now fearful now greedy markets. Translation: don’t underestimate the speculative beast underlying the BTC market…as reflected in the LGC (logarithmic growth curve) which has shown the ability to absorb the most horrific news and actions.”
The crypto analyst also points out that Bitcoin’s price and logarithmic moving average divergence (LMACD) indicator is showing a bullish divergence on the weekly chart.
The LMACD indicator is designed to reveal changes in an asset’s trend, strength and momentum.
“BTC bullish divergence on the weekly. “A bullish divergence occurs when prices fall to a new low while an oscillator fails to make a new low. This situation shows that bears are losing power and that bulls are ready to control the market again – often a bullish divergence marks the end of a downtrend.’
Dave the Wave also highlights that Bitcoin has remained at the accumulation level even in the midst of the catastrophe triggered by FTX.
“BTC Macro Context:
volatile price – throughout the FTX-triggered debacle – has remained in the buy zone.”
At the time of writing, Bitcoin is trading at $16,717, up 1.10% on the day.
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Featured image: Shutterstock/Natalia Siiatovskaia/Romolo Tavani
