Trader Who Called May 2021 Crypto Crash Says Bitcoin Bottom In, 2019 Style Setup in Play
The popular trader who called the May 2021 crypto market crash says Bitcoin (BTC) bottomed out now and a rally is imminent.
Pseudonymous trader Dave the Wave says his 135,500 Twitter followers as a key indicator shows that Bitcoin’s bottom was reached back in December 2022.
The trader looks at the monthly moving average convergence divergence (MACD), which aims to find reversals. He says the MACD shows that Bitcoin is setting the stage for a major rally, similar to the rally that began in April 2019.
He also looks at BTC’s monthly histogram, which traders use to spot changes in momentum and potential price reversals.
“This indicator [the MACD]along with the histogram, suggested that the bottom was a couple of months back [in December].”
Dave the Wave so in December, when Bitcoin was trading at around $16,400, there was no need to panic over a price collapse.
“Now is not the time to panic [and those that are well-hedged will never panic come what may].”
The merchant says The MACD indicator shows that Bitcoin is forming a similar pattern as it did in April 2019, before a big surge.
“No guarantees, but you’d have to say the odds on this BTC long-term indicator must be pretty good… Vertical lines give the same contraction on the momentum-measuring histogram.”
Dave the Wave too says that Bitcoin’s price is moving up into the weekly Gaussian channel, signaling that it is a good time to buy the royal crypt. Gaussian channels are momentum indicators that can be used to identify price reversals.
“- BTC price coming up against the weekly Gaussian
– 23% retracement of the macro correction
– similar setup on the weekly MACD
– price in the buying zone”
Bitcoin is worth $22,048 at the time of writing.
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