A trader known for his accurate Bitcoin (BTC) predictions believes that the current correction is favorable for his long-term upward trend.
The analysis, known as “Dave Wave,” suggests that Bitcoin’s recent drop below $60,000 has hindered the possibility of a parabolic rebound.
According to him, the price trend of BTC indicates more consolidation in the future, which will provide a more solid foundation for a significant rebound later this year:
The positive aspect… is its continued development in a relatively stable technical manner – consolidating to then enter a strong recovery in the fourth quarter. A more vibrant market will see higher prices later, compared to the early rise in [prices].
The reason why the bullish BTC price trend won’t display a parabolic trajectory is that it continues to develop in a relatively stable technical manner – consolidating, then entering a strong recovery in the fourth quarter. Prices in the later bullish market will be higher than those seen earlier.
He also recently predicted that Bitcoin’s price could drop to around $50,000 and may find support.
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Analysts state that dropping to $50,000 will bring BTC back to the “buying zone” against his logarithmic growth curve (LGC) model, which aims to predict the long-term bottoms and tops of Bitcoin cycles while filtering short-term fluctuations.
Even if BTC returns to the support level of the “buying zone,” it has tripled in value within two years, and from a technical standpoint, it is in a favorable position to resume an upward trajectory. For investors who previously bought in the LGC buying zone, this isn’t too bad.
Dave further emphasizes that such a deep correction will enable Bitcoin to regain upward momentum.
