Bitcoin may be entering a new bullish phase, according to analyst who called the May 2021 BTC Crash
Closely watched analyst Dave the Wave says evidence points to Bitcoin (BTC) entering a new bullish chapter as key long-term indicators turn green.
The pseudonymous analyst tells his 137,000 Twitter followers that if he were a “betting man” he would be paying attention to Bitcoin’s weekly moving average convergence divergence (MACD).
MACD aims to identify trend reversals by recording the convergence or divergence of a given set of moving averages. Dave the Wave marks six times in BTC’s history, including right now, where the MACD turned bullish right before significant multi-week or multi-month rallies.
“The Weekly BTC MACD.
If I were a betting man…”
Looking longer term, the popular analyst says another way to look at Bitcoin’s price performance is to price it in terms of gold, rather than US dollars. He suggests that in about 20 years, BTC could reach the same market value of gold, implying a 22X price increase.
“Mapping BTC against USD to give LGC is fine as long as prices move exponentially.
But strictly speaking, LGC will only really plateau against XAU [gold]in my opinion…
A 22x would give a BTC market cap of USD 12 trillion [in 2023 terms]. This is almost equivalent to the current market value of gold – $13 trillion.
Of course, in the 2040s it would be priced in a different currency [even if USD in name].
Best to just say that 1 BTC can equal 400 ounces [of gold].”
At the time of writing, Bitcoin is trading at $27,727, mostly sideways over the past seven days.
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