The crypto strategist who accurately predicted Bitcoin’s collapse last year believes BTC can handle even the most unfavorable developments.
Pseudonymous analyst Dave the Wave tells his 130,200 Twitter followers that crypto markets are facing a huge loss of public credibility after crypto exchange FTX filed for bankruptcy.
However, the analyst also reminds his followers that Bitcoin has managed to stay on a long-term uptrend even in the face of death knells in the past.
“One positive is the speculative instinct [for good and bad and ugly] has a short memory and tends to dominate in now fearful now greedy markets. Translation: don’t underestimate the speculative beast underlying the BTC market… as reflected in the LGC (logarithmic growth curve) that has shown the capacity to absorb the most horrendous news and acts.”
The crypto analyst also points out that Bitcoin’s price and logarithmic moving average divergence (LMACD) indicator is flashing a bullish divergence on the weekly chart.
The LMACD indicator is designed to reveal changes in an asset’s trend, strength and momentum.
“BTC bullish divergence on the weekly. ‘A bullish divergence occurs when prices fall to a new low while an oscillator fails to reach a new low. This situation demonstrates that bears are losing power, and that bulls are ready to control the market again – often a bullish divergence marks the end of a downtrend.’”
Dave the Wave also highlights that Bitcoin has remained in his accumulation levels even amid the catastrophe sparked by FTX.
“BTC macro context:
volatile price – during the whole of the FTX-sparked debacle – has remained in the buy zone.”
At time of writing, Bitcoin is trading at $16,717, up 1.10% on the day.
Source : dailyhodl