Indicator suggests new bullish rally for BTC
2 min readThe analyst known as Dave the Wave, who predicted the fall in the price of BTC in 2021, it now follows the opposite path. According to Dave, an indicator with a solid track record is suggesting further appreciation in price.
This indicator is called Moving Average Convergence Divergence (MACD), and it has a solid track record. Dave points out that the same indicator estimated a 300% appreciation in BTC in 2019, something that actually happened.
“The last time BTC’s weekly MACD crossed, after a prolonged correction to current levels, there was a sharp rally,” says the analyst.
In this regard, the MACD performed this crossover in 2019, when BTC was worth around $6,000. And a few months later, the cryptocurrency broke its all-time high, surpassing $20,000.
Source: Dave the Wave/Twitter.
About MACD
MACD is a trend-based momentum indicator that depicts the relationship between two moving averages of an asset. Most traders use the indicator to identify trend reversals and know where to enter or exit an asset.
Currently, many traders are concerned about the uncertainties of the macroeconomic scenario, especially price inflation. However, Dave claims that BTC may not be as influenced by these factors as the market thinks.
That is, the analyst says that the cryptocurrency continues to follow an independent path, without correlations. And to illustrate this, it shows points of a series of lows and highs in BTC price action. “BTC is doing what it wants, despite the ‘macro’”, he highlights.
Source: Dave the Wave/Twitter.
Even with a long bearish move, Dave indicates that BTC is rallying in the short term as the MACD crosses.
Dave The Wave has a short-term hit record. In April, when BTC was worth around $40,000, the analyst pointed out that the cryptocurrency would drop to the $20,000 level. When the correction took place, BTC hit a low of $18,700.
“Undoubtedly an unpopular chart, but it would be remiss of me as a chartist not to post what could be a real possibility, bearing in mind that technical analysis is risk management for both sides,” he said.
A chart shared by Dave in April showed the price of BTC at the time, followed by downward projections. “BTC chart updated from 3 months ago. Seeing a lot of graphics with the background placed, but not many updated,” he said.
