in

Analyst Who Called Bitcoin Collapse in May Plots ‘Worst Case Scenario’ for BTC As Crypto Markets Tumble

Image


The crypto analyst and trader who accurately called Bitcoin’s top just under $65,000 in May is now laying out his worst-case scenario for BTC.

The pseudonymous trader, known as Dave the Wave, tells his 77,700 followers that Bitcoin’s current price action looks similar to 2014, where the leading crypto asset plunged from around $988 down to about $160.

 

“While some have compared the PA (price action) to 2013, a comparison to 2014 is also of interest. If you find the chart alarming, remind yourself:

1] This is just TA (technical analysis)
2] You could consider it stress-test/ risk management of sorts.

And that would be my *worst case* scenario.”

Source: Dave the Wave/Twitter

Bitcoin is trading at $43,145.41 at time of writing and is down more than 16% in the past two weeks, according to CoinGecko. Dave the Wave’s charts indicate he sees the largest crypto asset by market cap dropping to a short-term target of $37,500.

“Crunch time.”

Image
Source: Dave the Wave/Twitter

The trader also expresses doubt about “the golden cross,” a technical event seen by many traders as a sign indicating future rallies.

“Why is the golden cross problematic? Because the 50 day cross of the 200 could just be too short a time reference/ preference.”

Dave the Wave adds he doesn’t think the correction will necessarily cause Bitcoin’s price to have a massive spike downwards to where the leading crypto asset might revisit prices below $20,000.

“Just as you didn’t see a blow-off top, you might not see that massive capitulation spike down. As with all corrections, people will no doubt be waiting for lower prices that never come. Over and out.”

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix
 

Check Latest News Headlines

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Fernando Cortes





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

What do you think?

Robinhood Testing New Cryptocurrency Wallet as Demand Rises

Robinhood Testing New Cryptocurrency Wallet as Demand Rises

Crypto Analyst Says Cardano NFTs ‘Seem To Have a Bright Future’

Crypto Analyst Says Cardano NFTs ‘Seem To Have a Bright Future’