A trader who nailed the May 2021 Bitcoin collapse says BTC may be gearing up to ignite explosive price action as soon as next month.
Pseudonymous analyst Dave the Wave shares with his 146,700 followers on the social media platform X a Bitcoin chart suggesting that BTC could start taking out resistance levels as early as October 1st, 2024.
The analyst’s chart also suggests that Bitcoin appears to be trading in a triangle pattern while consolidating in a wide range.
“BTC 4th quarter fireworks?”
The analyst adds that Bitcoin is likely to trade above its recent lows at $52,000 with a key moving average acting as support.
“BTC one-year moving average coming up fast…”
Dave the Wave also puts the current multi-month correction into a different perspective. Using the Fibonacci retracement tool, the analyst points out that Bitcoin has so far only dropped to the 0.236 Fibonacci level despite last month’s plunge below $50,000.
Traders typically see tremendous strength when an asset respects the 0.236 Fibonacci level as support as the setup suggests that buyers are willing to step in without waiting for the price to revisit lower levels.
Says the trader,
“Correction, consolidation maybe… but hardly a bear market.”
Earlier this month, the analyst shared a chart suggesting that Bitcoin may be mirroring its price action last cycle. The chart also suggests that Bitcoin looks poised to break out based on the 2020 cycle’s timeline.
“BTC.”
At time of writing, Bitcoin is worth $56,826, up over 3% on the day.
Generated Image: Midjourney