You can find the past price predictions of the crypto analyst nicknamed “Dave the Wave”, who accurately predicted the collapse of Bitcoin in May 2021. Dave is now analyzing the price behavior of Bitcoin (BTC) to determine if the leading crypto is ready for another drop.
The next $40,000 test will be decisive
Bitcoin is currently trading in an ascending channel, according to alias analyst Dave the Wave, who told his 94,000 Twitter followers that Bitcoin is currently trading in an ascending channel. This allowed Bitcoin to hit a 30-day high of $45,661 from $33,000. According to the crypto analyst, the ascending channel is now watching Bitcoin’s reversal after it erased about 50% of its value above the ATH level of $69,000. According to Dave the Wave, Bitcoin needs to recoup $40,000 to keep the channel open:
The $40,000 area will be the main test of what could become a corrective channel.
Bitcoin could drop below $30,000
Looking at the big picture, Dave the Wave believes Bitcoin is still bearish and on track to its target of $23,323.
With Bitcoin now trading below $40,000 support, the crypto strategist compares the current price action to BTC’s market structure in September 2018:
During this time, BTC recovered the $6,000 support one last time before the bears attacked and pushed Bitcoin as high as $3,000.
Bitcoin is trading below $39k at the time of writing. While the altcoin market, accompanied by leading crypto, has suffered double-digit losses compared to last week, volume giants such as Ethereum, Cardano and Dogecoin are at the top of the red board. As reported by Kriptokoin.com, the current selling pressure of the market is based on macroeconomic factors such as the Russia-Ukraine tension. However, as Ethereum founder Vitalik Buterin put it in a recent Bloomberg interview, “even if prices fall, a bear market could benefit the broader crypto industry“. Buterin explains why:
They embrace bear markets because while massive long-term price increases make many people happy, they also tend to attract a lot of short-term speculative interest.
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