Crypto analyst Dave the Wave, known for his precise forecast of the 2021 Bitcoin collapse, has some interesting details. Bitcoin Heffx believes bitcoin could rally back to $110,000 in a possible rally. This bullish forecast is due to the developing of an inverse head-and-shoulders pattern on Bitcoin’s daily graph. In light of recent market volatility and bearish sentiment, Dave the Wave reminds us all that BTC’s long-term uptrend is still strong and well in play. To him, what’s happening in the markets right now are just normal market dynamics and not something to be concerned about.
Dave the Wave’s analysis takes a multi-dimensional approach based on technical patterns, macro-market indicators and mass investor psychology. His insights provide an interesting context as to what we may see in the future as Bitcoin continues to experience wild market volatility.
Inverse Head-and-Shoulders Pattern
As for Dave the Wave, he thinks Bitcoin is forming a major inverse head-and-shoulders pattern. This encouraging technical formation suggests that a longer-term trend reversal may be underway. He notes that a close above the first resistance level would form the pattern’s neckline.
"With a push through the first line of resistance, the neckline of a possible BTC reverse [head and shoulders] would be formed… a great basing pattern." - Dave the Wave
According to Dave the Wave's analysis, Bitcoin could rally close to $89,000 before experiencing a pullback to the $77,000 support level. After that, he expects another run at a new all-time high, possibly above $110,000.
He’s confident that the current market conditions are just a typical sequence of moves and corrections. Dave the Wave suggests that objective observers would see the present situation as typical market behavior rather than reasons for panic.
Market Indicators and Investor Behavior
To back up his analysis, Dave the Wave looks at a number of market indicators. He observes that Bitcoin’s open interest is down 5%. This drop is a sign that some speculators are closing their leveraged position to limit potential losses.
In addition, he adds that Bitcoin’s 30-day Market Value to Realized Value (MVRV) Ratio has hit a half-year low. Based on these historical cycles, this level is seen as a bullish signal by crypto analyst Dave the Wave if history repeats itself.
Despite the positive funding rate at 0.0032% This change indicates that a bulk of futures traders are entering new long positions, bullishly expecting a market rebound.
Bitcoin's Performance
In the past few days, the entire cryptocurrency market capitalization decreased by $40 billion on a sudden 3% drop. Despite this, Bitcoin’s price has skyrocketed more than 8% in the last week. Dave the Wave’s review of technical and market indicators supports his bullish case for Bitcoin. This rosy performance bolsters his hopeful outlook.
Dave the Wave’s analysis gives us a glimpse into the possible next steps for Bitcoin, giving us more confidence to look ahead during this tumultuous time. As always, keep in mind that this is not financial advice. You should always consult a qualified financial professional before making any investment decision.
