Even with an ongoing bull trend and another round of stimulus money rolling out, Bitcoin price has pulled back from highs set over the weekend.
According to one crypto analyst, this could be the start of a more significant “reset” before its” off to the races” once again for the scarce digital currency. Here’s a look at the analyst’s chart and the factors backing up their contrarian theory.
Bitcoin Peak Is Nigh, Massive “Reset” Could Be Incoming
By all definitions of the term, Bitcoin is in an uptrend, and the greater cryptocurrency market with it. The nascent technology is being adopted by institutions and investors at a rapidly expanding rate, all while the dollar itself is devalued due to inflation.
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The environment has been the perfect storm for the cryptocurrency to thrive, given its hard-capped supply of only 21 million BTC. Even less are circulating and millions are lost or locked away forever.
While there’s no arguing that Bitcoin’s long-term value should bring it to prices of hundreds of thousands per a great “reset” could be coming for the top cryptocurrency by market cap.
The analyst expects a fall back to the "zero-line" on the MACD | Source: BTCUSD on TradingView.com
How Long Before Cryptocurrency Bulls Are Back Off To The Races Again?
According to cryptocurrency analyst Dave the Wave, who has supplied accurate analysis to the community through his Twitter soapbox for years now, Bitcoin could be looking at a strong “reset.”
Things might have taken off too quickly and too powerfully for Bitcoin price this time around, causing the LMACD to become overextended and brushing up against a long-term trendline. If the weekly MACD crosses down, momentum will take the price per Data Shows Bitcoin Peaks Last Roughly 40 Days: When To Sell Your Coins
At the same time, price action is trading at the top of a long-term logarithmic growth channel that has acted as the exact peak of past bull markets.
The pseudonymous analyst is a champion of the log scale, charting crypto assets like Bitcoin using logarithmic growth curves and a logarithmic version of the MACD.
A potential fall to the LMACD’s “zero-line” could be in the cards, immediately followed by the crypto asset being back “off to the races” once again.
How long the reset takes, where it goes, and if it happens at all is only speculation, and one theory of many that exist calling for higher prices. However, in the past, the analyst’s accuracy makes this contrarian take one that cannot be ignored.
Featured image from Deposit Photos, Charts from TradingView.com