The crypto strategist who accurately called Bitcoin’s collapse in May 2021 is looking at BTC’s price action to see whether the largest digital asset is primed for another correction.
Pseudonymous analyst Dave the Wave tells his 94,000 Twitter followers that Bitcoin is currently trading within an ascending channel, which allowed Bitcoin to rally from the lows of $33,000 to its 30-day high of $45,661.
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According to the crypto analyst, the ascending channel currently tracks Bitcoin’s bounce after BTC lost over 50% of its value from its all-time high above $69,000.
Dave the Wave adds that Bitcoin must reclaim $40,000 to keep the channel intact.
“The big test, for what may, in the end, be a corrective channel, is whether the $40,000 area holds.”
At time of writing, Bitcoin is trading at $38,958.
Looking at the higher timeframe, Dave the Wave says that Bitcoin is still in a downtrend and en route to hitting his target at $23,323.
“On the macro, price not out of the woods yet…”
With Bitcoin now trading below support at $40,000, the crypto strategist compares the current price action to BTC’s market structure in September 2018.
During that time, BTC bounced off support at $6,000 one last time before bears took out the key level and drove Bitcoin all the way down to $3,000.
“If I had to compare, I’d say we are here…”
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