Veteran trader Dave the Wave says Bitcoin (BTC) is at a turning point where it may either ignite a parabolic impulse to the upside or finally see a significant correction.
The pseudonymous analyst tells his 145,000 followers on the social media platform X that Bitcoin is potentially making a break for $65,000, but could drop to $41,000 if the attempt fails.
“Technical short-term target of $65,000 if price can break out of the channel, target of $41,000 if it cannot.
Your move BTC.”
Looking at his chart, Dave the Wave thinks BTC just broke out of a long-term regression band and is subsequently about to break out of a shorter-term overlapping ascending channel. If the breakout fails, the analyst’s downside target of $41,000 is at the bottom of the ascending channel.
Dave the Wave says that Bitcoin’s moving average convergence divergence (MACD) could provide a clue as to whether or not BTC could suddenly go parabolic.
The MACD is a momentum indicator that can suggest when trends are about to begin or reverse. According to the trader, once the MACD crosses above a certain level, BTC explodes in a final upward impulse before exhausting itself, as it did in January 2021 and December 2017.
Currently, Bitcoin’s MACD is roughly a week away from potentially going into Dave the Wave’s “parabolic strength” zone.
“The daily BTC MACD is a clue.
The difference between technical and parabolic strength.”
At time of writing, Bitcoin is trading at $51,662.
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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.
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