It has been revealed the fact that Bitcoin is currently flashing some pretty healthy long-term indicators, according to the latest predictions. Check them out below.
Bitcoin flashes bullish signals
According to a well-known Bitcoin trader, the current market cycle will not experience a fakeout rally similar to that of 2019.
Pseudonymously known as Dave the Wave, the trader explains to his 140,000 followers on social media platform X that the 2019 fakeout rally happened because Bitcoin suddenly broke out after spending only a few months in the “buy zone”.
The trader’s “buy zone” is his version of logarithmic growth curves (LGC), which aim to show the highs and lows of Bitcoin’s long-term market cycles while filtering out short-term volatility and noise.
However, the trader believes that Bitcoin has already spent over a year in the “buy zone” during this cycle, which sets the stage for a continuous bull rally.
He also supports his thesis with the monthly moving average convergence divergence (MACD), which is a momentum indicator that can indicate the reversal of an asset’s trend.
“Those that have followed me for some time may remember my calling of the 2019 BTC spike as a ‘mini bubble’. This was based on the LGC model, where the price moved too quickly/parabolically out of the buy zone.
This time, no such thing. Even if prices should decline a little more in the short term, the weekly MACD [a lagging indicator] suggests a risk-managed buy for the investor.”
As the trader analyzes the chart, they believe that BTC is still in a bearish state. However, they note that the MACD line is approaching the zero line from above, indicating that a bullish reversal may be on the horizon.
The trader also expresses confidence in the LGC model, which has proven to be a reliable indicator of BTC’s price movements.
According to the trader, the LGC model has accurately projected price ranges and predicted optimal buying times since its creation in 2018. They assert that this claim is irrefutable, as it is based on both prediction and performance.
