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A prominent crypto analyst, known for accurately predicting the 2021 Bitcoin market crash, is now signaling a potential bullish rally for the leading cryptocurrency. Pseudonymous analyst DAVE THE WAVE has highlighted a key technical indicator that suggests Bitcoin may be gearing up for a significant upward move.
In a recent analysis shared with his 149,300 followers on social media platform X, DAVE THE WAVE pointed to Bitcoin’s weekly logarithmic moving average convergence divergence (LMACD) histogram indicator, which is showing signs of strengthening. The LMACD histogram is designed to identify changes in an asset’s trend, strength, and momentum. Declining red bars on the histogram typically indicate weakening momentum, but the recent shift suggests a potential market reversal.
DAVE THE WAVE stated, “Bull markets climb a wall of worry. First strengthening histogram on the weekly BTC chart in 18 weeks/4.5 months. Weekly MACD itself has not been below the zero-line, in bear territory, since Feb 2023, i.e.; an ongoing bull market. People drop the ball when they ignore the technicals.”
Additionally, DAVE THE WAVE analyzed the BTC/gold ratio, which measures Bitcoin’s value relative to gold. His analysis suggests that the ratio may have peaked, indicating that Bitcoin could soon outperform the precious metal.
Lastly, the analyst shared a chart showing that Bitcoin has been trading outside the “buy zone” of his logarithmic growth curve (LGC) since it was last priced around $40,000. The LGC is a tool used to forecast Bitcoin’s market cycle highs and lows while filtering out short-term volatility.
DAVE THE WAVE noted, “Back when BTC was half the price that was the last time it hit the LGC ‘buy zone.’”
At the time of writing, Bitcoin is trading at $84,459, showing minimal change over the past 24 hours.
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