A crypto strategist who correctly called Bitcoin’s (BTC) collapse in May 2021 says one indicator suggests that the king crypto may have already witnessed the worst of the bear market.
Pseudonymous analyst Dave the Wave tells his 131,700 Twitter followers that BTC’s monthly histogram continues to respect a support level that has marked the bottom of the 2015 and 2018 bear markets.
Traders use the histogram to spot changes in momentum and potential price reversals.
Says Dave the Wave,
“The worst of it is over if the BTC monthly histogram is anything to go by. The technical analysis corrects the sentiment, which swings wildly with depression at the bottom to match euphoria at the top.”
The analyst is also keeping an eye on Bitcoin’s moving average convergence divergence (MACD), a momentum indicator that could potentially hint at a trend reversal. According to Dave the Wave, BTC’s weekly MACD remains above a support level that has also signaled the end of the 2015 and 2018 bear markets.
“Despite the recent sell-off, the weekly MACD still remains crossed above its signal line. Technically, a good sign.”
In short term, the analyst predicts a Bitcoin rally toward $19,000 after the king crypto breached its immediate resistance at $17,300.
At time of writing, BTC is changing hands for $17,796, a 3.42% increase on the day.
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