A crypto analyst who accurately called the 2021 Bitcoin crash believes BTC is in the process of creating a durable base for the next phase of the bull market.
Pseudonymous crypto strategist Dave the Wave tells his 149,300 followers on the social media platform X that Bitcoin appears to be creating an inverse head-and-shoulders pattern on the daily chart.
An inverse head-and-shoulders structure is traditionally viewed as a bullish reversal pattern, as it suggests that buyers are no longer waiting for the price to revisit recent lows before accumulating the asset.
Dave the Wave sees Bitcoin rallying close to $89,000 before dropping to support at $77,000 and rallying to a new all-time high above $110,000.
“With a push through the first line of resistance, the neckline of a possible BTC reverse [head and shoulders] would be formed… a great basing pattern.”
He also believes that Bitcoin’s long-term uptrend is intact, even though market sentiment for BTC has flipped bearish. He highlights that BTC’s price action suggests that the correction is almost over.
“The year rolls on, and so does the chart. Any objective observer of the chart, unfamiliar with the market and not being caught up in it, will no doubt wonder what the panic is regarding price [yes, people can be emotionally detached toward Bitcoin]. Their initial impression of the chart would be a visual one, seeing a regular series of moves and corrections, and they would most likely incline toward seeing the price currently at the end of yet another correction.
And yet most of those more closely tied to the market, watching its every daily move in price, are currently in a state of near panic. The explanation of this phenomenon, in my opinion, is collective/crowd sentiment on the one hand, and ‘money illusion’ on the other.”
At time of writing, Bitcoin is worth $83,500.
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