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?
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.
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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