According to an analyst who announced the BTC crash in May 2021, Bitcoin could enter a new bullish phase
Closely followed analyst Dave the Wave says there are signs Bitcoin (BTC) is entering a new bullish chapter as key long-term indicators turn green.
The pseudonymous analyst tells his 137,000 Twitter followers that if he were a “better” he would be paying attention to Bitcoin’s weekly moving average convergence divergence (MACD).
The MACD aims to identify trend reversals by plotting the convergence or divergence of a specific set of moving averages. Dave the Wave marks six times in BTC’s history, including now that the MACD turned bullish right before any significant multi-week or multi-month rallies.
“The weekly BTC MACD.
If I were a betting man…”
Source: Dave the Wave/Twitter
Looking further ahead, the popular analyst says another way to look at Bitcoin’s price action is to price it in gold rather than US dollars. He posits that BTC could reach the same market cap as gold over the course of about 20 years, implying a price increase of about 22 times.
“Mapping BTC to USD to indicate LGC is fine as long as prices move exponentially.
But strictly speaking, LGC will only really plateau against XAU [gold]In my opinion…
A 22x would give a BTC market cap of $12 trillion [in 2023 terms]. This is close to gold’s current market cap – $13 trillion.
Of course, it would be priced in a different currency in the 2040s [even if USD in name].
It’s best to just say that 1 BTC could equal 400 ounces [of gold].”
Source: Dave the Wave/Twitter
At the time of writing, Bitcoin is trading at $27,727, mostly sideways for the past seven days.
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