A popular cryptocurrency trader and analyst who accurately called the May 2021 market crash has recently suggested that Bitcoin’s ($BTC) price has already bottomed out and that its momentum suggests a rally is incoming.
Pseudonymous cryptocurrency analyst Dave the Wave has shared with their over 135,000 followers on Twitter that a key indicator is showing $BTC reached its bottom late last year, and is ready to rally. The trader looked at BTC’s monthly moving average convergence divergence (MACD) to point out the cryptocurrency is getting ready to rally.
The MACD is a trend indicator that measures the difference between an asset’s 12-day and 26-day moving averages t form a line used to identify signals to both buy and sell. It’s an oscillator, which means it fluctuates above and below a central line.
Per the analyst, BTC may be setting up for a rally similar to the one it saw back in 2019, after the cryptocurrency came out of a year-long bear market and started recovering from around $3,200 to later that year top $10,000. In 2021, BTC reached its all-time high near $70,000.
In a separate tweet, as reported, Dave the Wave also noted that BTC’s price is coming up against its weekly Gaussian channel, which is used to identify potential price reversals based on momentum.
As CryptoGlobe reported, the head of $4.1 billion cryptocurrency hedge fund Pantera Capital, Dan Morehead, has predicted this year will be one where trust in the space is rebuilt, and that Bitcoin is now entering its “seventh bull cycle.”
To Dan Morehead, a former Goldman Sachs bond trader who created the fund in 2013, the time for bulls in the cryptocurrency space is here. In a letter, he wrote that Pantera has been through “ten years of Bitcoin cycles” and that he has traded through “35 years of similar cycles.” Morehead wrote:
I believe that blockchain assets have seen the lows and that we’re in the next bull market cycle – regardless of what happens in the interest-rate-sensitive asset classes.
The former bond trader noted that this bear market was the only one to “ more than completely wipe out the previous bull market. In this case, giving back 136% of the previous rally.” The bear market drawdown was 77%, above the median of 73%, he said.
Per Morehead, the market is now “beginning to grind higher,” as it rebuilds trust. Per his words, 2022 saw a “combination of bad actors skirting lines in jurisdictions without clear regulations. If 2022 was the year of breaking rules and failing, I believe 2023 is the year that entities instead follow the rules and enjoy the rewards of doing so.”
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