Bullish Indicators for Bitcoin: Analyst Dave the Wave Reports Strengthening Signals
Dave the Wave, a crypto analyst who predicted the 2021 Bitcoin crash, claims a bullish signal is emerging for Bitcoin as the LMACD histogram shows strength for the first time in 18 weeks, indicating a possible price rally. He also suggests that Bitcoin may outperform gold and notes that Bitcoin has been outside the buy zone since its last price of $40,000.
A notable crypto analyst known as Dave the Wave, who accurately predicted the Bitcoin market crash in May 2021, has identified a bullish signal in Bitcoin’s trading indicators. He reports to his 149,300 followers on X that the weekly logarithmic moving average convergence divergence (LMACD) histogram is showing strength for the first time in 18 weeks, suggesting a potential rally for Bitcoin.
The LMACD histogram is a tool used to monitor changes in an asset’s trend, strength, and momentum. A decrease in the size of histogram bars often indicates weakening trend momentum. In the current context, the diminishing red bars may suggest an impending market reversal for Bitcoin. Dave the Wave emphasises, “Bull markets climb a wall of worry,” noting that this is the first sign of a strengthening histogram observed in over four months. The weekly MACD has remained above the zero-line since February 2023, indicating a continued bullish phase.
Furthermore, Dave the Wave analyses the BTC/gold ratio, which compares Bitcoin’s value to that of gold. His findings imply that this ratio may have peaked, hinting at Bitcoin’s potential to outperform gold soon. He also shares a chart indicating that Bitcoin has been out of his logarithmic growth curve (LGC) “buy zone” since the price hovered around $40,000. The LGC serves as a predictive tool for Bitcoin’s cyclical highs and lows while minimising the impact of short-term price fluctuations. He remarks, “The last time BTC was at this lower price was when it last reached the LGC ‘buy zone.’”
At the time of reporting, Bitcoin is priced at $84,459, showing no daily change. Investors are urged to exercise caution as the opinions expressed by The Daily Hodl are not intended as investment advice. All trading and investment decisions should be made after thorough research and consideration of the risks involved in cryptocurrency assets.
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