Bitcoin remains far below the $20,000 all-time high it established at the end of 2017’s crypto mania. But this hasn’t stopped investors from being extremely optimistic about the cryptocurrency.
One prominent analyst recently said that the asset is looking “super bullish” from a long-term perspective.
His comments are especially notable as he is an analyst that has nailed the directionality of this market over the past year.
In the middle of 2019, when BTC was surging past key resistances above $10,000, he called for a retracement to $6,400. He predicted that move correctly, nailing the bottom of the trend down to dollars.
Earlier this year, the analyst suggested that the asset would rally to $11,000 before reversing towards the $8,000s and maybe even lower. This, too, was correct.
Long-Term Outlook for Bitcoin Is “Super Bullish”
The analyst in question is “Dave the Wave.”
He noted recently that the Moving Average Convergence Divergence (MACD) indicator for Bitcoin’s weekly chart is “well situated for the cyclical move up” that will bring the asset to new heights in the long run.
Though a short term correction may well be on the cards, the longer term is looking super-bullish. Weekly MACD well situated for the cyclical move up as compared to last time…. pic.twitter.com/pKtWwF5ZIw
— dave the wave (@davthewave) May 30, 2020
Other indicators corroborate this.
Blockchain analytics firm Glassnode recently noted that approximately 60% of all BTC in circulation “hasn’t moved in over a year, showing increased investor HODLing behavior.”
The last time this much of BTC (percentage-wise) was frozen was “right before the BTC bull market of 2017,” prior to the 2,000% rally that took Bitcoin from $1,000 to $20,000.
There Could Be a Short-Term Drop
While Dave the Wave sees a bright future ahead for Bitcoin, he does believe that the asset could be subject to correcting lower in the near term.
He shared the chart below on May 28th, opining that BTC remains in a textbook descending triangle similar to the one seen at the peak of the market in 2019’s bull market.
The descending triangle shows that should Bitcoin break to the downside, it will fall towards $7,000.
Has anyone drawn a descending triangle yet? This would double up nicely with the .38 fib [just taking price into the 6K range], and triple up with the larger reverse head and shoulders drawn a month ago above. pic.twitter.com/sIXncYI0wM
— dave the wave (@davthewave) May 28, 2020
The analyst added that from a long-term growth perspective, Bitcoin is currently looking a “tad high.” This could imply an imminent correction to more sustainable levels.
He isn’t the only market participant to have reminded investors to be cautious as Bitcoin pushes higher.
As reported by Bitcoinist previously, one trader recently noted that Bitcoin’s recent price action looks eerily similar to that seen at the February highs of $10,500. Both periods have similar phases, including a triple-top pattern near a horizontal resistance.
Should BTC trade as it did after February highs, a strong drop could ensue in the following weeks. This would line up with Dave the Wave’s analysis.