Trader Dave the Wave tells his 33,000 Twitter followers that Bitcoin is about to take a big step as the main cryptocurrency shows signs of compression.
“Momentum and volatility are flat as prices curl into the triangle trading area. A picture of diminishing returns / price discovery if there ever was one, and based on what price actually does, not what it “should” do. Prepare well for the future. “
Based on Dave’s chart, Bitcoin is losing momentum as evidenced by the convergence and divergence of the falling logarithmic moving average (LMACD). The indicator is designed to reveal changes in the trend, strength and momentum of an asset.
Additionally, the Royal Coin’s volatility looks set to hit all-time lows as the Bollinger Bands Width Indicator (BBW) approaches a value of 0.50. BBW’s weak reading suggests that BTC’s trading range is at its narrowest in four years.
The tightening of the trading range and Bitcoin’s dying momentum suggests a violent move is on the horizon as the dominant cryptocurrency nears the end of a multi-year triangle. Dave says that once volatility returns, he expects Bitcoin to undergo a significant correction.
Short-term price forecast. 50% retracements… pic.twitter.com/NLiRs2EpYZ
– dave the wave (@davthewave) 17 juillet 2020
Once the withdrawal is complete, Dave sees Bitcoin ultimately breaking out of the long-term triangle. He says Bitcoin will recover its all-time high of $ 20,000 next year before triggering a manic phase that would send the top cryptocurrency above $ 100,000 before the 2022 expires.
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