In June, when Bitcoin was soaring above $10,000, nearly every trader and their mother expected the cryptocurrency to continue rocketing higher. At the time, the asset was seemingly poised to take on its previous all-time high due to a confluence of technical factors while emotions were riding high — a perfect, dare I say, scary combination for the price to go vertical.
Though, one analyst called for rationality to return to the crypto markets incessantly, opining that this surge above $10,000 was a clear overextension of BTC’s long-term growth curve. He went as far as to say that Bitcoin was poised to return to $6,700. Of course, the analyst was laughed at, calling the prediction “irrational” and “FUD.”
On Nov. 22, however, the analyst, “Dave the Wave,” was proven right; for on this date, Bitcoin fell from $8,000 to $6,700, validating a call he made over five months earlier, which he stuck by despite the now-infamous 42 percent surge seen late last month.
Pulling off such an incredible feat, where does Dave expect for BTC to head next?
Bitcoin To See a Bounce
Up, at least in the short term.
Dave remarked in a recent tweet that Bitcoin is currently trading extremely oversold according to the one-day chart on Bitstamp. Also, BTC is at the bottom of a medium-term channel that it has been trading in since June earlier this year. This confluence, he writes, means that the cryptocurrency is prime to see a price bounce, one that his chart seemingly says will bring BTC towards the $8,000s.
BTC oversold and at the bottom of its medium term channel. Due a bounce. pic.twitter.com/BVUZsdv8uQ
— dave the wave🌊 (@davthewave) November 25, 2019
As to whether or not, BTC will see more pain and fall further than $6,600, Dave doesn’t think so. He noted that there is a confluence of bullish support levels in the mid-$6,000s, where the cryptocurrency is trading at now.
These include but aren’t limited to the three-year moving average for Bitcoin, which is currently around the low-$6,000s — this is the point at which BTC found support in previous bull markets; the weekly Gaussian channel indicator is still green on Bitcoin’s weekly chart, implying that the long-term uptrend remains intact; and BTC recently bounced off the key 0.5 Fibonacci Retracement level of the $3,200 to $13,800 range.
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