Trader Who Predicted May 2021 Crypto Crash Issues Bitcoin Warning, Outlines BTC Target for Next Market Cycle
A top trader with a history of accurate market calls is warning Bitcoin (BTC) bulls not to get too ahead of themselves with outlandish price targets.
Pseudonymous crypto trader and analyst Dave the Wave tells his 139,000 Twitter followers that too many are placing Bitcoin price targets that follow a straight diagonal resistance and lead somewhere way into the six figures.
Dave the Wave instead uses logarithmic growth curves (LGCs) to map the potential trajectory of Bitcoin, depicting diminishing volatility and therefore smaller rallies and less dramatic corrections over time.
The LGC is designed to estimate Bitcoin’s long-term highs and lows throughout its lifetime while ignoring short-term volatility.
Says the trader,
“Beware the BTC charts with longer-term projected straight lines, channels and parallels that will proliferate for price targets in the next bull run.
Exactly what led most astray last time.”
Looking at the trader’s chart, the LGC model appears to predict that Bitcoin could rally above the $200,000 level before 2026 expires.
Dave the Wave also says that while BTC is “relatively high” after its strong performance so far this year, the crypto king is still in the opportunity zone for long-term investors as it hovers around the $30,000 mark.
“Yes, the price is relatively high.
But BTC is still in the LGC buy zone for investors.”
Dave the Wave recently said that Bitcoin’s bottom is likely already in and the question now is just how high BTC can run.
“With a consensus building that the BTC bottom is in, the question increasingly raised is what could the next top be. A proportionate response within the parameters of the LGC… performing since 2018.”
The trader provided a chart predicting a $157,512 Bitcoin price by 2025.
At time of writing, Bitcoin is trading for $29,843.
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Source: The Daily Hodl
