The pseudonymous trader tells his 67K Twitter followers that Bitcoin is lacking strength as it trades within the range between $30,000 and $40,000. According to the crypto strategist, a downward break of the range could be soon here.
“Price continuing to look weak in this trading range. Wouldn’t be surprised to see it break down to another level in the not too distant future… Buy the dip.”
Looking at his chart, Dave the Wave’s buy zone is around the $20,000 level, suggesting a further drop from Bitcoin’s current price of $35,762.
According to the trader, Bitcoin staying stuck in the wide range for the near future before finally collapsing and hitting the $20,000 level sometime in the third quarter of 2021.
“A trading range as long at the top would see price in this range through to August…”
Dave the Wave’s analysis is partially based on the concept of diminishing returns, or the idea that each bull cycle becomes less volatile than the one before it and therefore, peaks at lower and lower levels.
Based on this concept and the logarithmic growth curve, Dave the Wave says $64,804 was the top of the bull run, and BTC bulls will have to wait longer than expected before any new all-time highs.
“Diminishing macro volatility + Diminishing cycles + Diminishing returns = Price discovery. Buy the buy zone.”
Source: 'Dave the Wave' Predicts Another Bitcoin Collapse Later This Year – Fintechs.fi