A trader known for his accurate Bitcoin (BTC) predictions believes the current correction is favorable for his long-term upward trend.
The analyst, known as “Dave the Wave,” stated that the recent drop in Bitcoin below $60,000 has thwarted the possibility of a parabolic rise. According to him, the price action of BTC indicates that more consolidation is on the horizon, which will allow the cryptocurrency to build a stronger foundation for a serious rally later this year:
“The positive of this… is its continuing development in a relatively stable technical manner – consolidation, followed by renewed strength going into the fourth quarter. A more dynamic market at a later date would see higher prices than if it came earlier.”
Additionally, he recently forecasted that the price of Bitcoin could drop to around $50,000, where it is likely to find support.
The analyst suggests that a drop to $50,000 would return BTC to the “buy zone” according to his model of the logarithmic growth curve (LGC), which is designed to forecast long-term bottoms and tops 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.”
Dave also emphasized that such a deep correction would position BTC for a renewed upward impulse.