An analyst known as Dave the Wave, who accurately predicted the May 2021 Bitcoin crash, suggests that BTC could experience further downward movement before initiating a new rally towards new all-time highs.
Dave the Wave, sharing insights with his 146,700 followers on X, speculates that Bitcoin might revisit the “buy zone” of his logarithmic growth curve (LGC) model before establishing a local bottom.
The LGC model is designed to forecast Bitcoin’s longer-term cycle lows and highs while smoothing out short-term fluctuations.
Comparing BTC’s current price action to early 2017, the analyst notes a potential 40% correction before a significant surge.
“A similar 40% pullback slightly above the 0.38 Fibonacci level could lead to $44,000, bringing BTC price back to the trendline and the LGC buy zone.”
Dave the Wave suggests that the corrective move will ultimately benefit Bitcoin in the long run. He predicts that this drawdown could set BTC up for a 400% rally towards his bullish price target of $220,000 by the end of 2025.
“Short-term BTC pain, long-term gain.”
The analyst highlights that downward volatility is an inherent part of a Bitcoin bull market.
“BTC enthusiasts must accept both the positives and negatives. Despite the challenges, we are still technically in a bull market. However, there may be obstacles along the way.”
As of now, Bitcoin is trading at $57,685, showing a more than 2% increase for the day.
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