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Analyst warns: Bitcoin price signs are showing decline
An analyst who believes Bitcoin is headed for a bearish trend during the current consolidation and who correctly predicted the cryptocurrency crash three years ago says the market should be watched closely. The analyst, known as Dave the Wave, tells his 148,300 followers on social media platform X that he is following the Moving Average Convergence Divergence (MACD) indicator on Bitcoin’s weekly chart. The MACD indicator is used by traders to determine the direction of an asset and identify potential entry and exit points.
According to the analyst, Bitcoin’s MACD is poised to reset after a bearish crossover, suggesting that BTC is on the cusp of a correction that will take it below $90,000. Dave the Wave puts it this way:
BTC’s weekly MACD continues to reset to zero. There is a possibility of seeing momentum towards technical consolidation and new highs late in the year.
There are similar moves for 2024.
The analyst also points to potential Bitcoin downside targets, noting on the daily chart that Bitcoin is following a similar path to the price action in 2024. Last year, Bitcoin dropped below $50,000 after reaching $74,000. In this context, he suggests that Bitcoin could retest the $80,000 level, which corresponds to the 0.382 Fibonacci level. The Fibonacci extension tool is an important technical analysis tool that helps currency traders identify potential entry and exit levels.
Dave the Wave, who has a cautious view on BTC in the short and medium term, remains bullish in the long term. In a forecast earlier this month, the analyst stated that after the expected decline, Bitcoin could start a parabolic rally that could reach $260,000 before the end of 2025. At the time of writing, Bitcoin is trading at $95,503.
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