Trader Who Called May 2021 Bitcoin Collapse Warns of Significant BTC Correction in Coming Months

A trader known for making timely calls in the crypto space is warning that Bitcoin (BTC) may undergo a severe market correction within the next few months.

Pseudonymous analyst Dave the Wave tells his 139,400 X followers that Bitcoin may collapse to the lower bound of its logarithmic growth curve (LGC) before the end of the year.

The LGC aims to estimate Bitcoin’s long-term highs and lows throughout its lifetime while ignoring short-term volatility.

Says the analyst,

“In the course of eight months, BTC price has done a 2x from the bottom to the top of the LGC buy zone.

Would it be such a terrible thing IF price consolidated 38% of that move back to the base over the next few months?

I mean, it would still be in the buy zone for longer-term investors.”

Source: Dave the Wave/X

Looking at the analyst’s chart, he seems to predict the 38% drop from this year’s high could put Bitcoin at about $24,000 around December 2023.

According to the trader, the LGC model shows Bitcoin has reached a critical crossroads between resistance and support levels at its current value, indicating a significant price move is on the horizon.

“X marks the spot.

Your move BTC.

Interesting that both lines of support and resistance [shorter term] meet the upper and lower lines of the LGC buy zone on the same timeline.”

Source: Dave the Wave/X

He also says that the recent sideways trading of Bitcoin is a telling sign that the crypto king is evolving as an asset.

“The good news about all this waiting due to an increasing stabilization of price [from the macro perspective] is that BTC is becoming less volatile as it matures on its path toward eventual price discovery.”

Source: Dave the Wave/X

Bitcoin is trading for $29,571 at time of writing, up 0.7% in the last 24 hours.