The trader known as Dave the Wave gained fame by predicting a drop in the price of Bitcoin (BTC) in 2021. However, this time around, he offered a more optimistic view on 2023, believing that the price of the cryptocurrency could double over the course of the year.
According to Dave, who ran the analysis for his 133,000 Twitter followers, his goal for BTC this year is above $40,000. Specifically, the analyst estimates that the cryptocurrency should reach $42,000.
“Technical target of $42,000 this year to move BTC out of the ‘buy zone…’,” Dave wrote. This means that this prediction represents a 101% upside to the current Bitcoin price.
in an upward channel
According to an analysis by Dave, BTC has started forming a medium-term ascending channel, which is marking higher lows than before. This ascending channel ends sometime in October this year and its main points are in the area between $36,500 and $54,500.
Formation of a bullish channel on Bitcoin. Source: Dave the Wave / Twitter.
Currently, one bitcoin is worth about $20,897, according to CoinGecko. The cryptocurrency was above $21,000 but is down 2% over the past 24 hours. However, BTC’s performance has accumulated an appreciation of almost 20% this week alone.
However, bitcoin price is still 70% below its all-time high of more than $69,000, which it reached in November 2021. So even in a bullish Dave scenario, bitcoin will not renew its highs in 2023.
Less fluctuations over time
Investors’ perspective is that a new bullish cycle will begin in 2024, right after the Bitcoin halving. But Dave wonders if BTC’s bullish and bearish cycles will remain as strong as in the past.
According to the merchant, this may not happen. As the market matures and more people adopt BTC, the cycles will become more and more erratic. With that said, the market should suffer less volatility.
The “cycle” appears to be breaking apart, just as giant ice sheets would in warm waters. This should also not surprise us given a general principle, as it is understood that market maturity and increased liquidity lead to reduced volatility – the only significant uptick in volatility [e correção] It can be broken down into a series of smaller volatile peaks [e correções]the trader wrote in 2021.
In fact, increasing liquidity in a mature market [e muito especulativo] It is proposed to reconsider what should be the current “doctrine” of the courses. However, BTC can change and experience more stability, just like the gold market or fixed income.