Dave the Wave Reveals His ‘Worst Case Scenario’ For Bitcoin (BTC)
A prominent cryptocurrency analyst and trader known as Dave the Wave draws his worst case scenario for the largest digital asset, Bitcoin.
Dave the Wave, who accurately predicted BTC crash at $64K, shares with his 78K Twitter followers that Bitcoin’s current price action looks similar to 2014, when it crashed from around $988 down to about $160.
“While some have compared the PA (price action) to 2013, a comparison to 2014 is also of interest. If you find the chart alarming, remind yourself:
1] This is just TA (technical analysis) 2] You could consider it stress-test/ risk management of sorts.
And that would be my *worst case* scenario.”
Taking some of the volatility out of it. While some have compared the PA to 2013, a comparison to 2014 is also of interest.
If you find the chart alarming, remind yourself:
1] This is just TA 2] You could consider it stress-test/ risk management of sorts. pic.twitter.com/avnNbuXOIx
At the time of writing Bitcoin is trading at $43,006 with 7.3% losses on the weekly chart, according to CoinMarketCap. The analyst’s worst case scenario would see BTC to falling to a $37,500 short-term target.
Dave the Wave is not convinced about “the golden cross,” as a technical indicator for future rallies.
“Why is the golden cross problematic? Because the 50 day cross of the 200 could just be too short a time reference/ preference.”
The golden cross occurs when a short-term moving average crosses over a major long-term moving average to the upside and is interpreted by analysts and traders as signaling a definitive upward turn in a market. Basically, the short-term average trends up faster than the long-term average, until they cross.
Dave the Wave also points out that he doesn’t think the correction will necessarily be a massive plunge down as the up-trend earlier seemed more calm.
“Just as you didn’t see a blow-off top, you might not see that massive capitulation spike down. As with all corrections, people will no doubt be waiting for lower prices that never come. Over and out.”
