Noted cryptocurrency trader Dave the Wave (@davthewave) has reminded everyone today not to worry about Bitcoin because we may still be in a long-term bullish triangle. If it plays out, we could see an exponential break upward sometime in 2020.
Emotions are high in the cryptocurrency market after Bitcoin posted double-digit losses just one day after Bakkt’s release. The futures exchange was hyped to be a milestone in the cryptocurrency industry but has thus far seen dwindling volume and a price collapse across the board. Although, Bitcoin has managed to reclaim the $8,000 support level at the time of writing.
However, looking at the long-term view, Bitcoin is still bullish. Crypto-analyst and trader Dave the Wave (@davthewave) recently posted his analysis which shows that Bitcoin is still in a bullish triangle. He claims we could see a further drop to $6,700 before a significant bounce back. According to his chart, the triangle will break, at the very latest, sometime during the summer of 2020 and is expecting a significant upward move then.
A bit of context on a larger time-frame, and a triangle that should break upwards. pic.twitter.com/gt8E7n76PS
— dave the wave (@davthewave) September 30, 2019
The call may seem bearish to some short-term traders, but it is good news for the upcoming block reward halving. The event will happen around May 2020, and a slight uptick preceding it would bring much-needed momentum before this major milestone for the leading cryptocurrency. Now, however, many are eying support levels in the short-term and are anxiously watching whether or not the $8,000 price point will hold.
According to Dave, this triangle seems to be in the “perfect position relative to the log growth curve” and Bitcoin’s normal cycles. It remains to be seen whether this long-term triangle will play out as intended, but the macro view for Bitcoin looks strong. Short-term traders should be cautious about further choppy market movements until 2020, however.
Do you believe that Bitcoin will regain some steam leading up to the halving in May 2020? Do you agree with Dave the Wave’s chart? Let us know your thoughts in the comments below.
Images courtesy of Shutterstock, Twitter.