Historically Accurate Indicator Suggests Bitcoin (BTC) About to Rip, Says Analyst Who Called May 2021 Collapse

A closely followed crypto analyst known for calling the May 2021 collapse in Bitcoin (BTC) says that an indicator with a solid track record is suggesting rallies are approaching.

The pseudonymous analyst known as Dave the Wave tells his 122,000 Twitter followers that Bitcoin’s moving average convergence divergence (MACD) just flashed a signal that previously foreshadowed a 300% rally in BTC in 2019.

“Last time the Bitcoin weekly MACD crossed, after an extended correction to current levels, it went on a ripper.”

Source: Dave the Wave/Twitter

The MACD is a trend-based momentum indicator that depicts the relationship between two moving averages of an asset and is used by traders to pinpoint reversals.

While many traders are worried about uncertainties currently lurking in the macro environment outside crypto, Dave the Wave says BTC might not be as influenced by it as the market thinks.

He shows points to a series of higher lows and higher highs on BTC’s price action.

“BTC doing its thing… despite the ‘macro’.”

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Source: Dave the Wave/Twitter

In April of this year, Dave the Wave accurately predicted Bitcoin’s 50% drop from above $40,000 to near the $20,000 range.

The analyst 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.”

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Source: Dave the Wave/Twitter

Recently, Dave the Wave posted an update of his analysis from before the crash.

“Bitcoin chart updated from 3 months back.

Seeing a lot of charts with the bottom put in… but not many updated ones.”

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Source: Dave the Wave/Twitter

At time of writing, Bitcoin is trading for $23,226.

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Featured Image: Shutterstock/Everyonephoto Studio/Chuenmanuse


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