Bitcoin could enter next phase of bear market, warns trader who called BTC collapse in May

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A prominent crypto analyst and trader who called the Bitcoin crash in May said BTC could be about to enter the next phase of its bear market.

The pseudonymous crypto strategist, known in the industry as Dave the Wave, tells his 71,900 Twitter followers that he sees a big Bitcoin correction on the horizon.

“Fibonacci time [drawn from the start] allows a proportional amount of time for correction comparable to the parabolic tip. Another move close to the magnitude of the previous one would see the price in the low range of $ 20,000. Although not certain, certainly conceivable.

Source: Dave the Wave / Twitter

According to the trader’s chart, Bitcoin appears to mirror its price action from December 2020 through May 2021, where BTC rose from $ 20,000 to over $ 60,000 before initiating a 50% correction to $ 30,000. Dave the Wave says a similar correction could bring Bitcoin back to $ 20,000 before the end of the year.

Despite Bitcoin’s recent strength, Dave the Wave says BTC remains in a downtrend as it continues to trade below long-term diagonal resistance.

“The monthly chart has not yet closed above the resistance line drawn for a few months now. simple.

Source: Dave the Wave / Twitter

Although Dave the Wave calls for another Bitcoin correction, fellow crypto analyst PlanB sees BTC hit $ 63,000 in the coming months in its worst-case scenario.

“September $ 43,000 floor / worst case is not a typo. The small dip is caused by the data. However, this is a worst case estimate. My base case is, of course , the S2F estimate. Also, the worst-case / October low of $ 63,000 is more consistent again. So September is just a data shot. No worries to be had. “

Source: PlanB / Twitter

PlanB relies on its popular stock-flow model, which predicts price by measuring existing supply against the rate of production.

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