A prominent crypto analyst who gained popularity by accurately predicting the timing of the 2019 market collapse is warning traders that the Bitcoin price may be headed for lower ranges.
In a new tweet, the crypto trader, known as Dave the Wave in the industry, highlights his own technical analysis which indicates that Bitcoin is headed for a temporary bearish turn.
“*Short term* channel formed. You know the drill.”
Dave the Wave, who accurately predicted Bitcoin’s crash to $6,400 from $11,400 in 2019, reiterates that he is only bearish on a shorter timeframe.
“Surprised I have to spell this out for some. Short term was emphasized, and so ‘the drill’ refers to that – charting of short-term volatility is less weightier than the longer term, something I mention often.”
The cryptocurrency trader also reveals that Bitcoin’s price action is another sign that the leading digital asset is about to reverse and head south.
“No certainties of course [*especially* in the short term] but price action is currently on course for a series of lower highs and lower lows….”
Dave the Wave further points out that when attempting to return to $60,000 this May, Bitcoin had trouble reclaiming the $58,000 level.
“Certainly seems price has met a significant level here just south of the LGC channel top.”
To buttress his bearish Bitcoin outlook, the crypto trader also posted a chart showing a head and shoulders pattern, the presence of which can sometimes signal the end of a bull trend.
At time of writing, Bitcoin is wrestling with the $50,000 level after taking a dip down to $47,000, according to CoinGecko.
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/Warm_Tail