An analyst who correctly pinpointed Bitcoin’s local spike twice in the past is now planning a time when we could see a second decline in the benchmark cryptocurrency.

The analyst, nicknamed Dave the Wave, told his 67,500 followers that Bitcoin lacks strength as it trades in the $ 30,000 to $ 40,000 range. A breakthrough below this range seems imminent, according to the crypto strategist.

“The price looks weak when trading in this range. Wouldn’t be surprised if it dipped to another level in the not too distant future … Buy the dip. “

Weekly BTC / USDT Chart | Source: Dave the Wave / Twitter

Based on his chart, Dave the Wave’s buy zone appears to be around $ 20,000, which is another 47% drop from Bitcoin’s current price of $ 35,740.

The analyst also said he sees Bitcoin hovering around the current range for a short period of time before dropping to $ 20,000 sometime in the third quarter of this year.

“Bitcoin is traded in a wide range and could last until August of this year …”

BTC / USDT daily chart | Source: Dave the Wave / Twitter

He based his analysis on the concept of diminishing returns and the idea that each bull cycle should become less volatile than the previous one. Hence, Bitcoin will peak at a lower percentage. Based on that concept and a log growth curve, Dave the Wave says $ 64,804 is the top of the bull cycle and BTC bulls will have to wait longer than expected for an all-time high.

“Decreasing macro volatility + declining cycles + declining profits = pricing. Buy in the buy zone (Fib 0.5-Fib 0.618) ”.

BTC / USDT monthly chart | Source: Dave the Wave / Twitter

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Dailyhodl

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