Dave the Wave, a pseudonymous crypto analyst who accurately called the May 2021 Bitcoin (BTC) crash, has recently predicted a potential rally that is capable of sending the largest cryptocurrency by market capitalization toward its long-term diagonal resistance.
In a series of tweets on the 6th of June, the analyst told his teeming Twitter followers that Bitcoin (BTC) is currently trading within an ascending channel and potentially gearing up for a short-term rally to his target.
— dave the wave🌊🐫 (@davthewave) June 6, 2022
In another tweet, Dave the Wave said his target of $39,547 is speculative and only valid if the digital asset maintains the channel.
According to the analyst, traders who believe Bitcoin will revisit its 2017 cycle high of $20,000 should start thinking of risk management.
Dave the Wave noted:
“No one last year conceived of Bitcoin price falling to the previous all-time high. And yet now clarion calls abound. Is it possible? Sure, but people need to balance the [renewed] risk to the upside against the risk to the downside. After the double-top, I revised my technical targets.
“Simply amazed that I am now more bullish than the ‘once were hyper-bulls,’ who have turned bearish, or neutral at best, since the recent capitulation.”
The analyst is also of the opinion that there is a possibility that the bear market bottom is already in.
“Equally, the low could already have been put in. Shortest-term volatility is always the hardest to predict as near random. It is the longer-term indicators, as per the monthly chart, that gives the most reliability in technical analysis.”
Moreover, Dave the Wave showed how Bitcoin (BTC) has always bottomed out after touching the 4-year moving average on the monthly chart.
“A tricky one. Touch and go on the LGC. Support on the 4 year moving average…”
A tricky one.
Touch and go on the LGC. Support on the 4 year moving average… pic.twitter.com/ZLsIDh8Duu
— dave the wave🌊🐫 (@davthewave) June 4, 2022