Bitcoin at a Turning Point: Potential Parabolic Spike or Significant Correction
Veteran trader Dave the Wave believes Bitcoin (BTC) is at a critical juncture, with the potential for either a parabolic surge or a substantial correction. According to the pseudonymous analyst, if Bitcoin can break out of its current channel, it could target $65,000. However, if the breakout fails, the price may drop to $41,000.
Analyzing Bitcoin’s Chart and MACD
Dave the Wave’s analysis of Bitcoin’s chart suggests that the cryptocurrency has recently broken out of a long-term regression band and is now poised to break out of a shorter-term ascending channel. If the breakout fails, the downside target of $41,000 aligns with the bottom of the ascending channel. Additionally, Dave the Wave emphasizes the significance of Bitcoin’s moving average convergence divergence (MACD) indicator. Historically, when the MACD crosses above a certain level, BTC experiences a final upward impulse before reaching exhaustion.
Potential Parabolic Strength Zone
The current MACD reading indicates that Bitcoin is about a week away from entering Dave the Wave’s “parabolic strength” zone. This suggests that BTC may be on the verge of a significant move. At present, Bitcoin is trading at $51,662.
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