Analyst Who Predicted May 2021 Bitcoin Collapse Maps Potential BTC Capitulation Scenario

An analyst who called the Bitcoin May 2021 collapse is laying out possible scenarios for BTC, including a dramatic capitulation event.

The pseudonymous analyst known as Dave the Wave tells his 98,000 Twitter followers that Bitcoin is likely headed down below the $25,000 range.

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For references, he uses the May 2021 and November 2021 corrective periods as examples of what BTC traders could see next.

“If we get a Bitcoin move down comparable to the previous two, looking at the $25,000 region.”

Source: Dave the Wave/Twitter

The analyst also points out that despite the bearish price action in recent weeks, BTC still has considerable downside as suggested by its 200-week moving average (MA). Dave the Wave says that Bitcoin is still well above its 200-week moving average, and that its 20-week moving average historically tends to revisit the 200-week MA before a bear market is over.

“One for the bullish bears and the bearish bulls.

Note that the 200-week MA is quite high [above the previous peak]…. while the 20-week MA is moving down toward it…”

Source: Dave the Wave/Twitter

While the analyst says that an extended downtrend is the most likely scenario for Bitcoin, he notes that zooming out, BTC is still in a powerful long-term uptrend.

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“A few of the more optimistic theories may have become casualties as the price of Bitcoin continues to unfold in the market, but the macro bull remains… not to mention the [logarithmic growth channel].”

Source: Dave the Wave/Twitter

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