Bitcoin Setting Up for ‘Treasonous’ Correction, According to Trader That Called 2021 Market Cycle

An analyst with a history of making timely Bitcoin calls believes that BTC is on the verge of a correction.

Pseudonymous analyst Dave the Wave tells his 153,800 followers on the social media platform X that Bitcoin may decline to just above a Fibonacci retracement level at $96,000.

Fibonacci retracement levels are a method of technical analysis used to determine an assets support and resistance levels.

“The Bitcoiner of the ‘up only’ variety, might find this chart slightly ‘treasonous,’ but the BTC technician will no doubt find it very promising.”

Source: Dave the Wave/X

The analyst says that a Bitcoin correction to the .382 Fibonacci extension would set the flagship crypto asset up for a massive breakout to $160,000.

The analyst also shares a weekly chart showing Bitcoins moving average convergence divergence (MACD) indicator is flashing bullish for BTC.

The MACD is a technical indicator that tracks the convergence and divergence of moving averages to gauge an assets momentum and trend direction while pinpointing potential reversal areas.

“A similar BTC move up, even from a 38% real consolidation of the recent move, would see that Fib extension target hit.”

Source: Dave the Wave/X

Lastly, the analyst shares a daily Bitcoin chart suggesting BTC is repeating a similar 2024 pattern of consolidating within a range before breaking out to new all-time highs.

“BTC shaping up nicely.”

Source: Dave the Wave/X

Bitcoin is trading for $104,755 at time of writing, down 1.1% in the last 24 hours.