A trader known for his accurate Bitcoin (BTC) predictions believes that the current correction is beneficial to his long-term upward trend.
The analyst, known as “Dave the Wave,” stated that the recent drop in Bitcoin below $60,000 has thwarted the potential for parabolic gains. According to him, the price action of BTC indicates that further consolidation is imminent, which will allow the cryptocurrency to build a stronger base for a significant increase later this year:
“A positive of #btc price not going parabolic is that it continues to develop in a relatively stable technical manner – consolidation and then renewed strength going into the 4th quarter. A manic market at a later date would see higher prices than if it came earlier.”
He also recently forecasted that the price of Bitcoin could drop to around $50,000, where it is likely to find support.
The analyst suggests that a drop to $50,000 would bring BTC back into the “buy zone” according to his logarithmic growth curve (LGC) model, which is designed to forecast long-term bottoms and tops of the Bitcoin cycle while filtering out short-term volatility.
“Even if #btc came back to support at the ‘buyzone,’ a 3x appreciation in 2 years, where technically it would be well-positioned for renewed strength to the upside, is not too shabby for investors that bought the LGC buyzone earlier.”
Dave also emphasized that such a deep correction would position BTC for a renewed upward impulse.