The market is showing signs of weakness as the price of Bitcoin fell more than 5% in only two days and the price of Ethereum ETH dropped below $1,600. After breaking through the $24,000 support, the price of bitcoin began a steady drop. The support levels of $23,500 and $23,200 were breached.
Since the price dropped below the $23,000 level, it has resulted in disappointing price movement. According to CoinMarketCap, the entire value of the cryptocurrency market has moved above $1 trillion.
Although on the contrary, according to a well-known cryptocurrency analyst who correctly predicted the collapse of Bitcoin in May 2021, rallies are on the horizon based on a reliable indicator. The analyst, Dave the Wave said that Bitcoin’s moving average convergence divergence (MACD) just flashed a signal that previously predicted a 300 percent gain in BTC in 2019.
Why Does Bitcoin Rally Seem Imminent?
He claims that when the Bitcoin weekly MACD crossed, it took off in a big way following a lengthy decline to its present levels. Traders use the MACD, a trend-based momentum indicator, to identify reversals since it shows the relationship between two moving averages of an asset.
Many traders are concerned about the uncertainties that are currently threatening the macro environment outside of cryptocurrencies, but according to Dave the Wave, BTC may not be as affected by them as the market believes. He highlights a string of higher lows and higher highs in the price movement of BTC.
Dave the Wave correctly forecasted Bitcoin’s 50% decline from above $40,000 to close to the $20,000 range in April of this year. The analyst had said in April,
“Medium-term – No doubt an unpopular chart, but it would be remiss of me as a chartist not to post what could be a real possibility…. keeping in mind that TA is risk management to both sides.”