A trader known for his accurate Bitcoin (BTC) predictions believes that the current correction is favorable for its long-term uptrend.
The analyst known as “Dave the Wave” said Bitcoin’s recent drop below $60,000 has thwarted the possibility of a parabolic rise.
According to him, BTC’ s price action indicates that more consolidation is on the way, which will allow the cryptocurrency to build a more solid foundation for a serious rise later this year:
The positive aspect of this… is its continued development in a relatively stable technical fashion – consolidation followed by renewed strength going into the fourth quarter. In a [more dynamic] market, we will see higher prices later than if [the price] were to rise earlier.
Even if #btc came back to support at the ‘buyzone’, a 3x appreciation in 2 years, where technically it would be well-positioned for renewed strength to the upside, is not too shabby for investors that bought the LGC buyzone earlier.🧐 pic.twitter.com/6wmd1zxbEW
— dave the wave🌊🌓 (@davthewave) June 24, 2024
He also recently predicted that the price of Bitcoin could drop to around $50,000, where it would likely find support.
The analyst suggested that a drop to $50,000 would put BTC back in the “buy zone” relative to his logarithmic growth curve (LGC) model, which is designed to predict the long-term lows and highs of the Bitcoin cycle while filtering out short-term volatility.
Even if #btc came back to support at the ‘buyzone’, a 3x appreciation in 2 years, where technically it would be well-positioned for renewed strength to the upside, is not too shabby for investors that bought the LGC buyzone earlier.🧐 pic.twitter.com/6wmd1zxbEW
— dave the wave🌊🌓 (@davthewave) June 24, 2024
Dave also highlighted that such a deep correction would position BTC for renewed upward momentum.
The cryptocurrency market faced a sharp decline after President Donald Trump announced new tariffs, triggering a sell-off that wiped out around $509 million in value.
Bitcoin mining has undergone a notable shift over the past decade, moving away from hydrocarbon fuels and adopting more sustainable energy practices.
In a recent live address, U.S. President Donald Trump declared that a new base tariff of 10% would be applied universally to all countries.
Metaplanet, a Tokyo-based investment firm, has continued its aggressive push into Bitcoin by acquiring an additional 160 BTC for approximately $13.3 million.