A veteran crypto trader who has a history of nailing Bitcoin’s market tops and bottoms says that BTC is likely nearing the end of its current correction.
Pseudonymous trader and analyst Dave the Wave tells his 148,000 followers on the social media platform X that Bitcoin appears to be strongly reacting to the 365-day simple moving average (SMA).
His chart suggests BTC may be about to bottom out at the 365-day SMA for the fourth time since the beginning of the bull market, which would also coincide with the 0.5 Fibonacci level.
Traders use the Fibonacci retracement tool to spot potential entry and exit points based on the Fibonacci ratio.
“Follow the yellow brick road…”
At time of writing, Bitcoin’s 365-day SMA is hovering at around $74,400.
Despite fear gripping the markets, Dave the Wave suggests that BTC may be following in the footsteps of its August 2024 correction when it dipped to the 0.382 Fibonacci level before launching fresh rallies.
“A BTC observation.
Now a 38% real correction of the move up as per last time.”
The trader has recently stated that he believes that a deep drawdown will set the stage for a Bitcoin rally to around $180,000 by the end of the year.
“Why complicate things?”
At time of writing, Bitcoin is trading at $86,114, about 21% down from its all-time high.
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Generated Image: Midjourney
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